Coralogix Achieves Unicorn Status & Plans India Expansion

Coralogix Secures $115 Million to Fuel AI and Expansion

Coralogix, an Israel-based company specializing in full-stack observability and security solutions, has successfully completed a funding round, raising $115 million. This investment values the company at over $1 billion, representing nearly a doubling of its valuation since its previous funding in 2022.

Strategic Investment and Growth Plans

The newly acquired capital will be strategically allocated to bolster Coralogix’s engineering capabilities in India and to further develop its innovative AI agent, Olly. This Series E funding round was led by NewView Capital, a venture growth firm headquartered in California.

Investor Participation

Alongside NewView Capital, the round saw participation from the Canada Pension Plan Investment Board and NextEquity, a venture firm established by former Apple executives Avie Tevanian and Fred Anderson. The funding is comprised entirely of equity and is a primary offering.

The Growing Importance of Data Observability

As organizations increasingly rely on data to leverage the advantages of artificial intelligence, data observability has become paramount. However, many lack the dedicated resources or time to thoroughly analyze data streams and address critical issues.

Introducing Olly: The AI Observability Agent

Coralogix addresses this challenge with Olly, its AI-powered observability agent. Olly employs a semantic layer, integrating both internal data – including metadata – and external information sourced from the internet.

Simplifying Issue Resolution with AI

This allows companies to gain a deeper understanding of complex problems, such as identifying the root causes of slow performance or resolving common system errors, all through the use of straightforward text prompts. Olly is designed to provide more than just error reports.

Beyond Troubleshooting: Proactive Insights

According to Coralogix co-founder and CEO Ariel Assaraf, the AI agent can answer broader business questions. For example, it can identify features causing customer frustration, determine the revenue generated by those customers, or connect them with their dedicated account representative.

Olly’s Core Features

Olly incorporates features like anomaly detection, access monitoring, and real-time alerts to automate data observability processes for its users. The agent was developed by Coralogix’s dedicated AI research center, which the company intends to expand with the new funding.

Expanding into AI Observability

In addition to its AI agent, Coralogix offers observability and security features tailored for AI companies. This includes insights into model performance, as well as ensuring the quality, security, and governance of AI-generated responses. These capabilities were integrated through the acquisition of Aporia in December 2024.

Leveraging Cost-Effective Architecture

Assaraf emphasized the company’s architectural advantage, stating, “There’s an opportunity for us, given our architecture of analyzing stream query from remote, lower costs.” Significant investment will be directed towards expanding the AI research center.

India as a Key Engineering Hub

Coralogix plans to invest approximately $100 million in India over the next five years, capitalizing on the country’s robust engineering talent pool. This investment will support the expansion of its Gurugram office and the recruitment of additional staff in Bengaluru and Mumbai.

Building Engineering, R&D, and Customer Success Teams

The company aims to build out engineering, research and development (R&D), and customer success teams within India. Currently, Coralogix employs nearly 550 people globally, with 250 in Israel and 100 in India.

Synergy Between Israeli and Indian Engineering Cultures

Assaraf highlighted the cultural compatibility between Israeli and Indian engineers, describing it as a “get-it-done, very independent, very committed to the mission type of engineering” that aligns well with Coralogix’s values. This synergy is a key driver for expansion in India.

South Asia as a Growing Market

The South Asian market represents Coralogix’s second-largest revenue and user base, serving over 100 customers, following the United States.

Key Indian Customers

Notable Indian customers include Postman, Jupiter Money, Meesho, BookMyShow, BharatPe, CoinDCX, and Razorpay. Coralogix also serves banking and enterprise clients and is actively pursuing opportunities with the Indian government.

Exploring Strategic Acquisitions in India

The startup is also considering acquiring Indian startups to accelerate its growth within the country. Assaraf stated, “We have spoken to quite a few Indian companies about the potential M&A, but nothing has really been fulfilled.”

Revenue Growth and Path to Profitability

Since raising $142 million in a Series D round in June 2022, Coralogix has experienced a 7x increase in revenue, although the company is not yet profitable. Datadog is identified as its primary competitor.

Future IPO Plans

Coralogix is targeting an initial public offering (IPO) on the Nasdaq within the next three years. The company’s strategy focuses on developing its new architecture, customer engagement models, expanding into new geographies, and enhancing its AI-driven monitoring capabilities.

Continued Investor Support

The latest funding round also included participation from existing investors, including Advent International, Brighton Park Capital, Revaia, Greenfield Partners, Red Dot Capital Partners, O.G. Venture Partners, Joule Capital Partners, and Maor Investments.