AI test automation startup Opkey raises $47 million in funding to grow in Noida, Bengaluru

Opkey, an AI-driven continuous test automation platform for enterprise systems, has raised $47 million in a Series B funding round.

The round was led by PeakSpan Capital, with additional participation from existing investors.

Prior to this round, the startup raised $8 million in a Series A funding round in August 2022 led by Vertica Capital Partners. The current round brings its all-time raise to $57 million, according to CrunchBase. 

Expand R&D teams in Noida and Bengaluru

With the new funding, Opkey aims to accelerate its technological advancements, particularly in the area of Cloud ERP transformation.

The startup plans to expand its research and development (R&D) teams in Noida and Bengaluru, India, to develop a category-defining product and strengthen its sales and marketing efforts globally.

What does Opkey do?

Opkey's AI-driven platform is designed to simplify ERP (Enterprise Resource Planning) testing, addressing the complexities that arise during cloud ERP migrations.

"This funding will allow us to further enhance our technology and expand our reach, helping more organizations seamlessly migrate their legacy ERP systems to the cloud while ensuring continuous quality and performance, given its criticality to business outcomes," said Pankaj Goel, CEO and Co-founder of Opkey.

Addressing ERP testing challenges

ERP systems, which are essential for managing various business processes, often face challenges due to the complexity and constant updates required for smooth operation.

Traditional manual testing methods can be risky and time-consuming, potentially leading to disruptions in business operations.

Opkey said that leveraging AI and machine learning can reduce the time and effort required for ERP testing.

The startup's AI-powered assistant, Wilfred, uses a patent-pending GenAI Test Mining algorithm to dynamically generate tests tailored to client-specific configurations and customizations. As a result, enterprises can accelerate ERP changes by 50% and reduce defect rates by over 70%.

Opkey's market presence

Opkey claims to serve over 200 large enterprise customers, including 72% of the Fortune 1000. The startup also collaborates with major system integrators such as KPMG, Huron, and PwC to integrate AI into their implementation and managed services projects.

"As thematic B2B software investors, we understand the criticality of ERP and other enterprise applications, which represent significant investments and operate as the central nervous system powering global business operations. We believe that, given the inefficiencies that exist today in all phases of the ERP life cycle, a new category of solutions will emerge, utilizing AI to address the high failure rate of cloud transformation and automate critical areas of implementation, testing, and support. Solutions like Opkey's are mission-critical for achieving continuous assurance in the delivery of technology that yields optimal business outcomes," said Sanket Merchant, Partner, PeakSpan Capital.