Beacon Software, an AI-driven holding company focused on building the permanent home for essential vertical software and services, has raised $250 million in Series B funding. The round was led by General Catalyst, Lightspeed Venture Partners, and D1 Capital, bringing Beacon’s total capital raised to $335 million since its founding last year.
The financing also saw participation from BDT & MSD Partners, Chris Rogers (CEO of Instacart), and Sator Grove, alongside returning investors such as Amar Varma (Mantle), Darren Farber (Albion River), Eric Glyman and Karim Atiyeh (Ramp), Fidji Simo (OpenAI), Rafael Corrales (Background Capital), Scott Wu (Cognition), and Tony Xu (DoorDash).
Beacon was founded by Nilam Ganenthiran, former President of Instacart and Partner at D1 Capital, and Divya Gupta, former Partner at Sequoia Capital. The company has already acquired and partnered with dozens of software and services businesses across multiple sectors, including education, finance, logistics, and recreation. Collectively, these companies serve thousands of enterprise customers, employ hundreds of thousands of people, and support over one million active users.
Beacon’s mission is to empower essential yet often overlooked industries by embedding advanced AI and technology capabilities into the fabric of their operations. By pairing AI talent with entrepreneurs who have a deep understanding of their sectors, Beacon aims to modernize industries while preserving the legacy and identity of their operators.
The firm’s portfolio companies benefit from a shared platform that includes technology, design, fintech, and go-to-market expertise. Additionally, Beacon’s advisory network—Beacon Partners—comprises senior leaders from prominent companies such as Instacart, Lineage Logistics, Meta, OpenAI, Ramp, and Shopify, who help portfolio companies scale innovation and expand their market reach.
How the funding will be used: With the funding, Beacon plans to broaden its portfolio of software and services companies and continue scaling its central AI and engineering teams to drive further transformation across industries that serve millions of people daily.
KEY QUOTES:
“Beacon exists to transform the industries that quietly power our everyday lives.”
“After nearly a decade helping grocers modernize at Instacart, I realized Main Street businesses everywhere need to be equipped for the technology revolution ahead. By pairing the deep expertise of the entrepreneurs we back with Beacon’s AI and technology capabilities, we are helping industries modernize while protecting the legacy of the teams who built them.”
Nilam Ganenthiran, Founder & CEO of Beacon Software
“We’re excited to back Beacon as they transform real-world industries with AI. Beacon is at the center of General Catalyst’s AI-enabled roll-up strategy: acquiring durable businesses and embedding leading technology talent directly into them. This model doesn’t just create better software, it builds stronger companies delivering real impact to the communities they serve.”
Marc Bhargava, Managing Director at General Catalyst
“Beacon is a radically new approach to transforming everyday industries with software and AI, inspired by my experience working with legendary Silicon Valley companies at Sequoia Capital, Databricks, and Palantir. With permanent capital, world-class technologists, and a long-term mindset, we are dedicated to preserving the legacy of our businesses while driving their growth through technology, talent, and process.”
Divya Gupta, Co-Founder & CTO of Beacon Software
“Having worked with Beacon since its founding, we’re thrilled to deepen our partnership with Nilam and the Beacon team as they bring AI-powered transformation to the foundational industries that drive our economy. Nilam’s proven track record as an operator and investor, combined with his deep understanding of how technology can scale Main Street businesses, makes him the ideal founder to lead this mission. Beacon’s approach of embedding AI capabilities directly into established businesses represents exactly the kind of practical, high-impact innovation we look for at D1.”
Mike Tully and Jeremy Goldstein, D1 Capital Partners
“Our investment in Beacon exemplifies our conviction in partnering with exceptional founders building transformative companies. Nilam, Divya and the Beacon team are bringing AI directly to software businesses that we interact with in our everyday lives. This isn’t just about building better software, it’s about empowering companies that keep our communities running and enabling them to continue to grow and thrive.”
Bejul Somaia, Partner at Lightspeed Venture Partners
