AI security firm Observo AI raises $15m to tackle data overload with agentic AI

AI security firm Observo AI raises $15m to tackle data overload with agentic AI

Observo AI, an AI-native data pipeline company, has secured $15m in seed funding to advance its solutions for managing the rising costs and complexity of observability and security data.

The round was led by Felicis and Lightspeed Venture Partners.

The company specialises in optimising data pipelines using machine learning and agentic AI, which dynamically adapts to shifting data environments. This approach enables enterprises to manage the exponential surge in AI-generated data more efficiently while reducing processing costs by over 50% and improving detection accuracy and incident response times.

The fresh funding follows growing enterprise adoption of Observo AI’s platform, with clients such as Bill, Informatica, and Harbor Freight Tools relying on its technology to handle petabytes of data daily. The company has recorded a remarkable 600% revenue growth quarter-over-quarter since launching nine months ago, underscoring strong demand for its AI-powered data management solutions.

The challenges posed by AI-driven data growth are significant, with a 2024 KPMG study revealing that nearly 50% of enterprises suffered security breaches, often due to poor data quality and false alerts.

Observo AI was co-founded by Gurjeet Arora and Ricky Arora, who previously worked at Rubrik. Their firsthand experience with security and AI-driven data challenges inspired the company’s mission to streamline enterprise data workflows.

Observo AI CEO Gurjeet Arora said, “Observo uses LLMs and Agentic AI to revolutionize observability and security. Our platform automates routine tasks, highlights key insights, and lets teams focus on preventing breaches and ensuring reliability.”

Investors see Observo AI’s technology as a game-changer for enterprises struggling with the growing complexity of security and observability data.

Felicis general partner Jake Storm said, “Every new AI agent, application, and model generates exponentially more data, and the result is chaos for DevOps and security teams.

“Observo AI’s platform applies ML and LLM-driven automation to cut through the noise and deliver actionable insights—precisely the kind of innovation needed to secure the AI-powered enterprise.”

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