Kleiner Perkins, Redpoint Ventures, and Khosla Ventures co-led the round, with existing investors Kleiner Perkins and Sequoia Capital doubling down
Built by leading causal-ML researchers from Berkeley, Columbia, Cornell, and MIT, Traversal is live across complex enterprise environments such as Nubank, Harvey, and DigitalOcean and inside Fortune 100 companies such as PepsiCo just 15 months after emerging from stealth
NEW YORK, November 03, 2026–(BUSINESS WIRE)–Traversal, the frontier lab building AI agents for enterprise-grade site reliability engineering, today announced $120 million in new funding with a $1 billion valuation. The funding will support the company’s vision of extending AI across the software development lifecycle (SDLC) by making production systems more resilient.
“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.”
A 2026 Splunk and Oxford Economics report found downtime costs have surged 50 percent in two years, with engineers losing seven hours a week to troubleshooting. The driver is rising software complexity, much of it from AI—teams write 180 percent more code than they could two years ago. Gartner projects 85 percent of enterprises will adopt AI SRE tooling by 2029, up from under 5 percent in 2025.
“Five weeks into our Traversal rollout, and it’s already becoming part of how our on-call engineers work incidents,” said David Vélez, Founder and CEO of Nubank. “We’re expanding it wave by wave as those results hold up. It’s early, but it’s the kind of leverage we want AI to give our engineering teams.”
Frontier AI models are not ready to run production on-call on their own. On ORCA-bench, Traversal’s production-fidelity benchmark built with Cornell Tech and Columbia University, the best of five frontier agents achieved just 25.3 percent accuracy on medium-difficulty incidents, dropping to 10 percent when incident reports were vague. The benchmark includes 1,079 root-cause tasks. Hallucination rates ran as high as 40 percent.
“We’re taking a modern approach to software development, and we build much of the technology ourselves,” said Siva Gurumurthy, CTO of Harvey. “When we work with an external partner, the bar is high, and Traversal clears it. It helps our engineers extend an AI-native development lifecycle all the way to production as Harvey scales.”
Traversal’s ARR has grown 9x year-to-date, while product usage is up nearly 100x and monthly active users nearly 20x over the same period. Customers ran more than 150,000 investigations last quarter, with the product supporting over 4,000 engineers across more than 1,000 major incidents, 50,000 minor incidents, and 5,000 significant production changes, returning tens of millions of dollars in ROI across customers.
“AI has changed how software gets written. An equally important challenge is keeping the services our customers rely on highly available, especially at the scale and standards American Express demands,” said Matthew Liste, CTO, American Express. “Our work with Traversal is helping us gain better insights into our production environment, giving engineering teams more context to identify and resolve issues. Ultimately, it’s about building more resilient systems and helping our engineers work more effectively.”
Traversal’s founders trained as researchers in causal machine learning. Anish Agarwal and Raj Agrawal earned their PhDs at MIT, Raaz Dwivedi earned his at UC Berkeley, and Ahmed Lone came from quant trading at Citadel Securities. Anish and Raaz have maintained faculty appointments at Columbia University and Cornell Tech while building the company.
“Traversal is moving toward superintelligent AI SRE—making the outer loop of the SDLC resilient and complementing the increasingly autonomous inner loop of AI coding agents, so the full development lifecycle becomes autonomous end to end,” said Raaz Dwivedi, Co-Founder of Traversal. “Some of the best people in this field spend their nights reconstructing what a system already did instead of designing what it should do next.”
Kleiner Perkins, Redpoint Ventures, and Khosla Ventures co-led the round, with participation from Sequoia Capital, Battery Ventures, and Amex Ventures. Kleiner Perkins, which led Traversal’s Series A, increased its investment. Sequoia, which led Traversal’s seed round, deployed its growth fund to increase its stake well beyond its existing position, a step the firm reserves for its highest-conviction companies.
“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 brings real intelligence to the way enterprises operate their production systems at scale. As AI dramatically accelerates the pace at which software is written and shipped, the complexity of managing production will only grow,” said Aditya Naganath, partner at Kleiner Perkins. “Traversal gives engineering teams the intelligence they need to understand their systems, resolve incidents faster, and operate with confidence at a scale that simply wasn’t possible before.”
“We’ve been tracking this category for more than two years, and Traversal has hit a clear inflection point,” said Sai Senthilkumar and Scott Raney at Redpoint Ventures. “Over the past several months, the world’s largest enterprises have begun trusting Traversal with their most critical incidents. As more companies realize how hard it is to build an AI SRE internally, Traversal is meeting the moment at the perfect time as incident volume has exploded. Traversal gives production and SRE teams their ChatGPT moment by meaningfully reducing MTTR and transforming how teams resolve critical incidents. It feels magical to these teams and internal usage has skyrocketed. Traversal has clearly cemented itself as the fastest-growing and largest AI SRE vendor by scale.”
On the heels of this raise, Traversal is hiring across research, engineering, and go-to-market. Open roles are listed here.
Traversal came out of stealth in June 2025 with $48 million led by Sequoia and Kleiner Perkins, followed by a strategic investment from Amex Ventures in December 2025. This round brings Traversal’s total funding to $173 million.
About Traversal
Traversal is the AI site reliability engineer (AI SRE) for the enterprise, helping engineering teams autonomously diagnose, remediate, and prevent production incidents. Its Production World Model and Causal Search Engine give AI a continuously updated understanding of production systems, their dependencies, and the root causes of incidents. Traversal is trusted by companies including Nubank, Harvey, PepsiCo, and DigitalOcean. Founded by causal machine learning researchers from MIT, Berkeley, Cornell, and Columbia, Traversal is backed by Sequoia Capital, Kleiner Perkins, Redpoint Ventures, and Khosla Ventures. Learn more at traversal.com.
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