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Atomicwork gets backing from Khosla for its AI alternative to old-school IT software like ServiceNow | TechCrunch

Jan 28, 2025 - techcrunch.com
Atomicwork, a SaaS startup founded by Vijay Rayapati, Kiran Darisi, and Parsuram Vijayasankar, has secured $25 million in a Series A funding round led by Khosla Ventures and Z47, with participation from Battery Ventures, Blume Ventures, and Peak XV Partners. The startup, which has raised over $38 million to date, aims to simplify communication and service delivery between employees and enterprises by deploying AI agents. Atomicwork's platform offers a modern AI-driven experience that replaces traditional IT service management systems like ServiceNow, enabling quick implementation within weeks. It integrates with apps such as Microsoft Teams, Slack, and Salesforce, allowing employees to access services from HR, IT, or finance departments.

The company, which has eight customers primarily in the U.S., plans to use the new funding to enhance its AI R&D, strengthen platform engineering, and expand strategic partnerships with companies like Oracle and SAP. Atomicwork utilizes existing large language models from OpenAI and others, along with its in-house models, to automate workflows while addressing data security concerns by allowing enterprises to own encryption keys or bring their own model endpoints. The startup's team comprises over 60 people, with more than 50 based in India, and it aims to attract more customers by bolstering its product and technology offerings.

Key takeaways:

  • Atomicwork, a SaaS startup founded by Indian entrepreneurs, raised $25 million in a Series A round led by Khosla Ventures to scale AI-driven service management solutions.
  • The platform aims to replace traditional IT service management systems like ServiceNow with a modern AI-driven experience, offering quick implementation in weeks rather than years.
  • Atomicwork utilizes existing LLM models and in-house models for workflow automation, providing enterprises with options for data security and compliance.
  • The startup plans to use the new funding to enhance AI R&D, expand integrations, and grow its customer base, primarily in the U.S.
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