Traversal Raises $120M at a $1 Billion Valuation

Traversal, a NYC-based provider of an AI site reliability engineering (AI SRE) platform for the enterprise, has raised $120 million in a new funding round, bringing the total to $173 million, at a $1 billion valuation.

The round was co-led by Kleiner Perkins, Redpoint Ventures, and Khosla Ventures with participation from Sequoia Capital, Battery Ventures, and Amex Ventures.

The company will use the funding to expand AI across the software development lifecycle (SDLC), improve the reliability of production systems, and hire across research, engineering, and go-to-market teams.

What is Traversal?

Traversal develops an AI site reliability engineering platform that helps enterprise engineering teams identify, fix, and prevent production incidents.

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Its platform is designed to help teams investigate technical problems and understand why systems fail. It uses two core technologies: a Production World Model and a Causal Search Engine. These tools give the AI an updated understanding of production systems, their dependencies, and the causes of incidents.

The platform helps engineering teams reduce the time and effort required to investigate production issues and maintain reliable software systems.

How Much Funding Has Traversal Raised?

Traversal has raised $173 million in total funding, including its latest $120 million round.

The company has not disclosed details of its previous funding rounds in the announcement.

The latest round values Traversal at $1 billion.

Who Invested in Traversal’s Funding Round?

The $120 million round was co-led by three investors:

• Kleiner Perkins
• Redpoint Ventures
• Khosla Ventures

Other participating investors include Sequoia Capital, Battery Ventures, and Amex Ventures.

Why the Funding Matters

Traversal plans to use the capital to extend AI capabilities across the software development lifecycle. Its focus is on making production systems more resilient and helping engineering teams manage incidents more effectively.

The company will also expand its research, engineering, and go-to-market teams to support product development and business growth.

Who founded Traversal?

Traversal was founded in 2025 by Anish Agarwal, Raj Agrawal, Raaz Dwivedi, and Ahmed Lone.

The company is headquartered in New York City.

“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,” said 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,” said David Vélez, Founder and CEO of Nubank. “We're expanding it wave by wave as those results hold up.

“We’re taking a modern approach to software development, and we build much of the technology ourselves,” said Siva Gurumurthy, CTO of Harvey. “When we work with an external partner, the bar is high, and Traversal clears it. It helps our engineers extend an AI-native development lifecycle all the way to production as Harvey scales.”

Market and Business Growth

Traversal reported strong growth in its business and product usage. Its annual recurring revenue (ARR) has increased ninefold since the beginning of 2026, while product usage has grown nearly 100 times. Monthly active users have also increased nearly 20 times over the same period.

During the last quarter, customers conducted more than 150,000 investigations using the platform. The product supported over 4,000 engineers across more than 1,000 major incidents, 50,000 minor incidents, and 5,000 significant production changes.

What Happens Next?

Traversal plans to expand its AI capabilities across the software development lifecycle and improve the reliability of enterprise production systems.

The company will also invest in research, engineering, and go-to-market hiring as it works to support more enterprise customers and expand the use of its platform.

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