Traversal Raises $120M at $1B Valuation to Automate Site Reliability Engineering

Quick Facts

• Traversal raised $120 million in a Series B round at a $1 billion valuation, with Kleiner Perkins, Redpoint Ventures, and Khosla Ventures as co-leads.
• The company's ARR grew 9x year-to-date, monthly investigations rose from 513 to nearly 73,000, and monthly active users increased nearly 20x.
• Traversal's platform cut mean time to recovery by an average of 40% across enterprise clients and achieved 82% root cause analysis accuracy at a Fortune 100 financial services company.

Traversal Inc. has closed a $120 million Series B at a $1 billion valuation, bringing total funding to $173 million. Kleiner Perkins, Redpoint Ventures, and Khosla Ventures co-led the round. Sequoia Capital, Battery Ventures, and Amex Ventures also participated.

Kleiner Perkins, which led the company's Series A, increased its stake. Sequoia, which co-led the earliest rounds, made what Traversal described as significant participation in this round.

What the Company Builds

Traversal sells an AI site reliability engineer designed to diagnose, remediate, and prevent production infrastructure problems without constant human intervention. Its platform rests on two proprietary systems: the Production World Model and the Causal Search Engine.

The Production World Model maintains a live map of a production environment, connecting more than 100 million entities through more than 10 billion causal links. The Causal Search Engine traces signals across 5, 10, or 20-plus hops in systems and time, running hundreds to thousands of queries to identify root causes rather than surface symptoms.

A third component, the Knowledge Bank, pulls in operational context from runbooks, Slack conversations, and internal documentation, feeding that information back into the Production World Model so the AI reasons with the same background a human on-call engineer would have.

Founders and Academic Roots

CEO Anish Agarwal holds a PhD in computer science from MIT and specializes in causal machine learning, an AI discipline focused on identifying cause-and-effect relationships rather than statistical correlations. He holds a faculty appointment at Columbia University while running the company.

Co-founders Raj Agrawal earned his PhD at MIT, Raaz Dwivedi at UC Berkeley, and Ahmed Lone came from quantitative trading at Citadel Securities. Dwivedi holds a faculty appointment at Cornell Tech. Before founding Traversal, Agarwal worked as a management consultant at Boston Consulting Group and as a research scientist at Amazon and Microsoft.

Growth Metrics

Traversal emerged from stealth in June 2025 with $48 million in combined seed and Series A funding. In March 2026, American Express announced a partnership with the company, and Amex Ventures invested. The Series B closed roughly 17 months after the stealth exit.

Monthly investigations on the platform climbed from 513 to nearly 73,000 during 2026. In the most recent quarter alone, customers ran more than 150,000 investigations, covering more than 1,000 major incidents, 50,000 minor incidents, and 5,000 significant production changes across more than 4,000 engineers.

About two-thirds of platform usage now goes beyond root cause analysis into alert triage, release risk assessment, configuration management database validation, security monitoring, and customer-journey tracking.

Enterprise Customers and Benchmarks

Current customers include Nubank, Harvey, DigitalOcean, and PepsiCo, all within 15 months of the stealth exit. A Fortune 100 financial services company achieved 82% root cause analysis accuracy using Traversal across its in-scope applications.

Traversal's research team, working with Columbia University and Cornell Tech, also released ORCA-bench, a public benchmark for evaluating AI agents on production root cause analysis. The benchmark runs agents against a live OpenTelemetry-instrumented e-commerce application built on 19 microservices written in 13 programming languages. Early results showed that frontier AI models perform poorly on the benchmark without purpose-built tooling for production environments.

The $120 million Series B places Traversal near the 96th percentile for U.S. enterprise software Series B rounds of all time, reflecting investor appetite for AI systems that handle operational work rather than purely conversational tasks. The company plans to use the funds to expand its platform and grow its engineering and go-to-market teams.