Jan 28 (Reuters) - AI enterprise service management firm

Atomicwork said on Tuesday it has raised $25 million in a Series

A funding round led by venture capital investors Khosla Ventures

and Z47.

The fundraise valued San Francisco-based Atomicwork at $150

million, according to a source familiar with the matter.

Other investors who participated in the round include

technology-focused investment firm Battery Ventures, India-based

venture funds Blume Ventures, and Peak XV Partners.

WHY IT'S IMPORTANT

Atomicwork provides AI-integrated service management software

that helps businesses manage their IT workflows, with a focus on

mid-market companies. Some of its customers include software

company Zuora ( ZUO ) and consumer finance firm Pepper Money.

The funding will help Atomicwork scale its enterprise AI

agents, invest in product expansion and improved platform

support, the startup said.

CONTEXT

AI startups have been driving a resurgence in venture

capital funding, with nearly half of all U.S. venture capital

dollars raised last year going to these companies.

Founded in 2022, Atomicwork has launched "agentic AI

services" that are increasingly popular with IT teams seeking to

reduce workloads and automate routine tasks.

Microsoft's ( MSFT ) Copilot and ServiceNow's ( NOW ) AI are

among the leading players in the field, with their AI agent

software being used by companies around the world to improve

productivity and reduce costs.

BY THE NUMBERS

Atomicwork had raised a total of $14 million in seed funding

in September, and is backed by more than 40 global chief

information officers, chief technology officers and industry

veterans.