Traversal, an AI company developing autonomous agents for enterprise site reliability engineering (SRE), has raised $120 million in new funding at a $1 billion valuation. The investment will support its goal of extending AI across the software development lifecycle by improving the reliability of production systems.
The funding round was co-led by Kleiner Perkins, Redpoint Ventures and Khosla Ventures, with participation from Sequoia Capital, Battery Ventures and Amex Ventures. Kleiner Perkins increased its investment after leading Traversal’s Series A, while Sequoia Capital also expanded its stake.
“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. “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.”
“Traversal is a research lab attacking one of the hardest problems in production software: reliability and uptime,” said Jai Sajnani, partner at Khosla Ventures. “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.”
Traversal is developing AI tools to help engineering teams diagnose, resolve and prevent production incidents. Its platform uses a Production World Model and Causal Search Engine to maintain an updated understanding of production systems, their dependencies and the causes of incidents.
The company said its research benchmark, ORCA-bench, developed with Cornell Tech and Columbia University, shows that current frontier AI agents still struggle with production incidents. The benchmark includes 1,079 root-cause tasks, with the best of five tested agents achieving 25.3% accuracy on medium-difficulty incidents. Accuracy fell to 10% when incident reports were vague, while hallucination rates reached as high as 40%.
Traversal reported strong business growth in 2026. Its annual recurring revenue (ARR) has increased ninefold year-to-date, product usage has grown nearly 100 times, and monthly active users have risen nearly 20 times. Customers conducted more than 150,000 investigations last quarter, with the platform supporting over 4,000 engineers across more than 1,000 major incidents, 50,000 minor incidents and 5,000 significant production changes.
Founded by researchers in causal machine learning, Traversal’s team includes Anish Agarwal and Raj Agrawal, who earned PhDs at MIT, and Raaz Dwivedi, who earned his PhD at UC Berkeley. Ahmed Lone previously worked in quantitative trading at Citadel Securities. The founders have also maintained academic appointments at Columbia University and Cornell Tech.
Traversal emerged from stealth in June 2025 with $48 mn in funding led by Sequoia Capital and Kleiner Perkins. It later received a strategic investment from Amex Ventures in December 2025. The latest round brings its total funding to $173 million. The company says it serves customers including Nubank, Harvey, PepsiCo and DigitalOcean.
