Companies are increasingly utilizing AI services like ChatGPT to support workers in writing memos, addressing inquiries, and more. A key indication of AI's growing influence in enterprise IT is its integration into everyday applications used by organizations. Today, a startup exemplifying this trend is announcing new funding that highlights the acceleration of enterprise AI adoption.
Opkey has developed an AI-driven platform that enables organizations to continuously test finance, HR, and other enterprise resource planning (ERP) software. With significant customer engagement—over 200 large enterprise clients and partnerships with well-established system integrators like KPMG LLC and PwC—the startup has successfully raised $47 million in a Series B funding round.
PeakSpan Capital is spearheading this funding, with support from existing backers and current investors, including UST Global, Verica, Vertical, and India's YourNest. This Series B funding marks a significant advancement for Dublin, California-based Opkey, which had previously raised only $12 million. The startup has opted not to disclose its current valuation.
While Opkey’s platform may operate behind the scenes in the enterprise IT landscape, it addresses crucial market needs that are vital for smooth enterprise operations. As cloud architecture and SaaS solutions serve as the foundation for new business services, many legacy organizations are undergoing digital transformation, finding such solutions faster, cost-effective, and easier to deploy. However, these transformations can also introduce a host of issues; vulnerabilities or inconsistencies between software can potentially disrupt entire networks. This is where Opkey steps in.
CEO Pankaj Goel co-founded Opkey with childhood friends Avinash Tiwari and Lalit Jain, all of whom are seasoned ERP industry professionals with backgrounds at major companies like Adobe and Oracle. Their experiences illuminated the importance of thorough software testing and the severe consequences of neglecting it. ERP systems do not operate independently; they integrate with one another, meaning that discrepancies can lead to complete system failures.
"Cloud applications receive regular updates, a significant shift from traditional software," Goel explained in an interview. "These updates can disrupt existing functionalities." He notes that organizations usually integrate seven or eight ERP systems. "Any changes in this ecosystem require re-testing, leading many enterprises into what I call 'testing hell.'"
Testing and data challenges are common issues that AI-based automation can effectively address, a realization that's increasingly shared by cybersecurity and DevOps companies. Opkey’s platform continually monitors integrations, updates, upgrades, and what the company refers to as "user acceptance"—the extent to which end users are engaging with new features. Opkey's current coverage includes platforms such as Oracle, Workday, Coupa, Veeva, Salesforce, SAP, Microsoft Dynamics, UKG, and Trackwise.
Sanket Merchant, the partner at PeakSpan who guided the investment, anticipates a robust demand for services like Opkey’s as IT continues to evolve. However, there's a question of whether this demand will be sufficient to fend off competition from others in the same field, such as Leapwork and Katalon. Additionally, larger ERP providers might also consider entering this space.
"For many businesses, the largest IT expenses are associated with critical enterprise applications, particularly ERP systems," he stated, referencing data showing that approximately $73 billion is spent annually on ERP software for functions such as billing, accounting, people management, and software deployment, affecting both small firms and global corporations. These enterprises can utilize as many as 52 different applications relying on ERP integrations.
"Automated testing is essential to ensure that these investments yield the expected results," he emphasized. "A failed implementation of SAP or a Workday migration can significantly impact a business's revenue and reputation."
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