Observo AI, a cutting-edge AI-native data pipeline company, has announced a successful $15 million seed funding round, led by Felicis and Lightspeed Venture Partners. This investment fuels Observo AI’s mission to combat data sprawl and soaring observability and security costs by leveraging agentic AI-powered automation.
By integrating advanced machine learning with agentic AI capable of decision-making, continuous learning, and adaptive evolution, Observo AI optimizes data pipelines for enterprises dealing with an explosion of AI-generated data. The platform enhances efficiency, security, and cost-effectiveness, enabling organizations to slash data processing expenses by over 50% while improving detection accuracy and reducing incident resolution time by more than 40%.
Accelerated Adoption and Exponential Growth
Observo AI’s rapid traction in the enterprise sector underscores the urgent demand for its technology. Leading companies, including Bill, Informatica, and Harbor Freight Tools, rely on the platform to manage petabytes of data daily. Since launching just nine months ago, the company has achieved an astonishing 600% quarter-over-quarter revenue growth.
The surge in AI adoption across industries has led to an unprecedented 100x increase in data volumes compared to pre-AI workloads, pushing observability and security costs to unsustainable levels. Traditional observability and security tools, designed for a pre-AI era, struggle to manage this rapid growth, resulting in false positives, data sprawl, and undetected threats. According to a 2024 KPMG study, nearly 50% of enterprises experienced security breaches, citing poor data quality and false alerts as key factors.
Addressing a Critical Industry Challenge
Observo AI was born out of firsthand experience with these challenges. Founders Gurjeet Arora and Ricky Arora identified the growing data problem while working at Rubrik. Recognizing that traditional solutions were ill-equipped to handle AI-driven data expansion, they set out to develop an AI-first approach to observability and security.
“Observo uses LLMs and Agentic AI to revolutionize observability and security,” said Gurjeet Arora, co-founder and CEO. “Our platform automates routine tasks, highlights key insights, and lets teams focus on preventing breaches and ensuring reliability.”
AI-Powered Innovation for the Data-Driven Enterprise
The rapid adoption of AI has created a paradox—while AI agents drive innovation, they also generate massive amounts of observability and operational data, overwhelming conventional tools. Observo AI’s AI-native architecture is designed to transform how security and observability data is ingested, processed, analyzed, and prioritized.
At its core, Observo AI’s agentic platform continuously refines its understanding of data patterns, automatically optimizing pipelines in real-time as new threats and anomalies emerge. Leveraging ML and LLMs, the platform filters through vast amounts of unstructured data, extracting the most critical signals for incident detection and response. Its autonomous capabilities allow it to anticipate data processing bottlenecks, dynamically adjust filtering rules, and eliminate redundant data streams without manual intervention.
“Every new AI agent, application, and model generates exponentially more data, and the result is chaos for DevOps and security teams,” said Jake Storm, General Partner at Felicis. “Observo AI’s platform applies ML and LLM-driven automation to cut through the noise and deliver actionable insights—precisely the kind of innovation needed to secure the AI-powered enterprise.”
Guru Chahal, Partner at Lightspeed Venture Partners, added, “Observo AI’s use of Agentic AI with streaming observability creates a powerful system that constantly learns and improves, making data pipelines efficient and intelligent. This is game-changing technology for enterprises grappling with the data challenges of observability and security infrastructure.”
“Before Observo AI, teams spent hours sorting through alerts and noisy data, which was neither scalable nor effective,” said Rinki Sethi, CISO at Bill. “Observo AI automates the data cleanup and highlights the insights that matter, enabling security teams to focus on threat detection and proactive security hunting.”