Traversal has raised $120 million in new funding at a $1 billion valuation to expand its artificial intelligence platform for enterprise site reliability engineering. The round was co-led by Kleiner Perkins, Redpoint Ventures, and Khosla Ventures, with participation from Sequoia Capital, Battery Ventures, and Amex Ventures. The financing brings Traversal’s total funding to $173 million.
Traversal develops AI agents designed to help enterprise engineering teams diagnose, remediate, and prevent production incidents. Its technology is already deployed within companies including Nubank, Harvey, PepsiCo, and DigitalOcean.
The company said annual recurring revenue has increased 9x year-to-date, while product usage has risen nearly 100x and monthly active users have grown nearly 20x.
Customers conducted more than 150,000 investigations through Traversal during the most recent quarter. The platform supported more than 4,000 engineers across more than 1,000 major incidents, 50,000 minor incidents, and 5,000 significant production changes.
Traversal’s technology centers on a Production World Model and Causal Search Engine designed to maintain an updated understanding of production environments, dependencies, and potential root causes of software incidents.
The company argues that conventional frontier AI models remain insufficient for independently managing complex production environments. On ORCA-bench, a production-focused benchmark developed by Traversal with Cornell Tech and Columbia University, the strongest of five frontier agents achieved 25.3% accuracy on medium-difficulty incidents and 10% when incident descriptions were vague. Hallucination rates reached as high as 40%.
Traversal was founded by researchers with backgrounds in causal machine learning. CEO Anish Agarwal and Raj Agrawal earned PhDs from MIT, Raaz Dwivedi earned his PhD from UC Berkeley, and Ahmed Lone previously worked in quantitative trading at Citadel Securities.
The company emerged from stealth in June 2025 with $48 million led by Sequoia Capital and Kleiner Perkins and later received a strategic investment from Amex Ventures.
Traversal plans to use the new financing to expand its research, engineering, and go-to-market organizations while pushing its AI technology deeper across the software development lifecycle.
KEY QUOTES:
“Site reliability engineering is one of the hardest problems in applied AI because every company’s software environment is different, and with downtime costing companies as much as $600 billion a year, the stakes are enormous. After two years refining our technology, we’re seeing customers expand how they use Traversal across increasingly complex production environments. This funding brings us closer to our vision of letting engineers engineer.”
Anish Agarwal, CEO And Co-Founder Of Traversal
“Five weeks into our Traversal rollout, and it’s already becoming part of how our on-call engineers work incidents. We’re expanding it wave by wave as those results hold up. It’s early, but it’s the kind of leverage we want AI to give our engineering teams.”
David Vélez, Founder And CEO Of Nubank
“Traversal is moving toward superintelligent AI SRE—making the outer loop of the SDLC resilient and complementing the increasingly autonomous inner loop of AI coding agents, so the full development lifecycle becomes autonomous end to end. Some of the best people in this field spend their nights reconstructing what a system already did instead of designing what it should do next.”
Raaz Dwivedi, Co-Founder Of Traversal
“Traversal is a research lab attacking one of the hardest problems in production software: reliability and uptime. As AI writes more of the world’s code, software will break more often and in ways no single team can untangle. Traversal is compressing hours of incident investigation into minutes, and the company is on a path to becoming the system of intelligence for how enterprise software runs and heals itself. The productivity unlock for enterprise engineering teams is enormous, and we’re proud to support the company in this next phase of growth.”
Jai Sajnani, Partner At Khosla Ventures
