Coralogix Surges to Unicorn Status with $115M Raise, Plans Major India Expansion and AI Development

Israeli observability and security platform startup Coralogix has secured a $115 million investment in a Series E funding round, bringing its pre-money valuation to over $1 billion, thus achieving unicorn status. The round was led by California-based venture growth firm NewView Capital, with significant contributions from the Canada Pension Plan Investment Board and venture firm NextEquity, founded by former Apple executives Avie Tevanian and Fred Anderson. This funding comes nearly three years after Coralogix's last round in 2022, during which the company has grown its revenue by seven times, though it remains unprofitable. The newfound capital will be primarily used to expand Coralogix’s engineering operations in India and further develop its artificial intelligence (AI) observability agent, called Olly. With a growing emphasis on data observability, the agent is designed to simplify complex data analysis for companies. It uses a semantic layer that combines internal metadata with external information to respond to a variety of inquiries, including identifying the root causes of service slowdowns and resolving common system errors. Olly can also provide strategic insights, such as pinpointing which features are causing customer frustration, the associated cost, and the relevant account representatives. Additionally, Olly features anomaly detection, access monitoring, and real-time alerts to enhance data observability automation. Coralogix’s expansion includes a substantial investment of around $100 million in India over the next five years. This plan involves expanding its current Gurugram office and establishing new bases in Bengaluru and Mumbai to build robust engineering, research and development (R&D), and customer success teams. Currently, Coralogix has about 550 employees globally, with 250 in Israel and 100 in India. The goal is to double the Indian workforce within three years, leveraging the strong alignment between Israeli and Indian engineering cultures. India is Coralogix’s second-largest market in terms of both revenue and user base, following the United States. Over 100 Indian companies, including notable names like Postman, Jupiter Money, Meesho, BookMyShow, BharatPe, CoinDCX, and Razorpay, already use Coralogix’s services. The startup is also exploring opportunities to serve the Indian government and is considering acquisitions of local companies to bolster its presence in the region. According to CEO Ariel Assaraf, discussions with Indian firms about potential mergers and acquisitions have been ongoing, though no deals have been finalized yet. In addition to its AI observability capabilities, Coralogix offers observability and guardrails to AI companies, ensuring their models perform accurately and securely. This capability was enhanced in December 2024 through the acquisition of Aporia, which specializes in AI model monitoring and management. Aporia’s integration allows Coralogix to provide deeper insights into model performance, data quality, security, and governance, thereby addressing a critical need in the rapidly evolving AI landscape. Since the 2022 funding, Coralogix has made significant strides, particularly under the leadership of Assaraf, who highlights the company's innovative architecture for analyzing stream queries remotely. This unique approach not only reduces costs but also enhances customer engagement across different regions. Looking ahead, Coralogix aims to cement its position as a leading player in the observability market by continuing to innovate and expand its service offerings. The startup’s primary competitor is Datadog, a well-established player in the observability space. However, Assaraf believes that Coralogix’s focus on AI-driven solutions and its strategic investments in emerging markets will give it a competitive edge. The company is targeting a U.S. IPO on Nasdaq within the next three years, contingent on demonstrating continued progress in its technological advancements, international expansion, and market penetration. Industry insiders have praised Coralogix’s innovative AI agent, noting its potential to transform how companies manage and derive value from their data. By automating the process and making it accessible to a broader range of employees, Olly can significantly reduce the time and resources required for data investigation and decision-making. This move also highlights the growing importance of AI in enhancing data observability and security, a trend that is expected to drive further investment and innovation in the sector. Coralogix, founded by Ariel Assaraf and backed by a diverse investor base, has been a trailblazer in the observability market. The company’s commitment to expanding in India and developing AI-centric solutions positions it well to capitalize on the growing demand for efficient data management and security in the tech industry.