By Arasu Kannagi Basil and Ateev Bhandari

June 17 (Reuters) - Data analytics platform Coralogix

nearly doubled its valuation to over $1 billion in its latest

funding round, co-founder and CEO Ariel Assaraf told Reuters in

an interview, as artificial intelligence-driven enterprise

offerings continue to pique investor delight.

Coralogix raised $115 million in a round led by

California-based venture growth firm NewView Capital, the

startup said on Tuesday. Canada Pension Plan Investment Board

(CPPIB) and venture firm NextEquity also participated in the

round.

The fundraise comes three years after Coralogix's previous

external funding in 2022, where it raised $142 million.

Valuations have faced downward pressure since then, as investors

continue to sit on dry powder amid elevated interest rates and

geopolitical tensions.

Enterprise software-as-a-service startups, however, have

endured a wider slowdown in venture capital funding, with an AI

gold-rush pushing SaaS financing to record $58 billion in the

first quarter, according to PitchBook.

Coralogix's revenue increased seven times since 2022,

Assaraf told Reuters. The company, however, is yet to be

profitable, with nearly 75% of its revenue in 2024 going towards

research and development, according to Assaraf.

"Successful companies in our space always invest a large

portion of their revenue in R&D and were very late to become

profitable," Assaraf added, noting a similar pathway across

peers Datadog ( DDOG ) and Splunk.

Startups are integrating AI-driven agents across IT

development and operations as enterprises increasingly ask for

all-in-one platforms to oversee their entire cloud

infrastructure and processes.

Coralogix expanded into AI observability with the

acquisition of Aporia in December 2024. The company is

aggressively looking to expand its AI talent pool, Assaraf said.

"If there's a strategic acquisition of a company with a

specific, very talented pool of people around AI, we will make

those acquisitions, even if they're not small," he told Reuters.

On Tuesday, Coralogix also unveiled its new AI agent "olly,"

aiming to simplify data monitoring via a conversational

platform. Industry leaders have hailed AI-based agents as a

transformative use case of the technology.