Harness reaches a $5.5B valuation after securing $240M to streamline AI’s post-coding processes
Harness Secures $240 Million in Series E Funding, Eyes $250 Million ARR in 2025
Harness, an AI-powered DevOps platform established in 2017 by seasoned entrepreneur Jyoti Bansal, is projected to surpass $250 million in annual recurring revenue next year, according to Bansal in a conversation with TechCrunch.
The company recently completed a $240 million Series E funding round, boosting its valuation to $5.5 billion after the investment.
This latest round features a $200 million primary investment led by Goldman Sachs, along with a planned $40 million tender offer. Investors such as IVP, Menlo Ventures, and Unusual Ventures also participated. The tender offer is designed to provide long-term employees with some liquidity, Bansal noted.
Harness’s new valuation marks a 49% increase from its previous $3.7 billion valuation during a $230 million raise in April 2022. To date, the company has secured a total of $570 million in equity funding.
Addressing the “After-Code” Bottleneck
As artificial intelligence accelerates code creation, it has intensified challenges in the subsequent stages of software development—such as testing, security, and deployment—which still account for nearly 70% of engineers’ time. Harness aims to streamline and automate these complex, error-prone processes, helping organizations manage the surge in AI-generated code and minimize the risk of deploying faulty software.
Harness’s Unique Approach
Bansal, recognized for previously founding and selling AppDynamics to Cisco for $3.7 billion, brings deep expertise in post-coding software workflows.
Harness leverages AI agents to automate tasks like testing, validation, security, and governance. Its platform is built on a comprehensive software delivery knowledge graph, mapping out code changes, services, deployments, tests, environments, incidents, policies, and costs. This knowledge graph, Bansal explains, sets Harness apart by providing a nuanced understanding of each client’s software delivery landscape.
“Our AI agents rely on this knowledge graph for context,” Bansal shared with TechCrunch.
Using this contextual data, Harness’s AI agents generate customized pipelines tailored to each customer’s policies, architecture, and operational needs. An orchestration engine then translates AI recommendations into automated actions, with safeguards in place to ensure safe implementation.
Image Credits: Harness
Recognizing that AI is not infallible, Bansal emphasized that the system incorporates human oversight. All AI-generated tests and fixes are reviewed by engineers, compliance specialists, or auditors before deployment.
Market Position and Growth
Harness competes with established players like Microsoft’s GitHub, GitLab, Jenkins, and CloudBees. Despite the competition, Harness has gained significant traction, serving over 1,000 enterprise clients—including United Airlines, Morningstar, Keller Williams, and National Australia Bank. The company has facilitated 128 million deployments and 81 million builds, safeguarded 1.2 trillion API calls, and helped customers save $1.9 billion in cloud expenses over the past year, according to Bansal.
Headquartered in San Francisco, Harness employs more than 1,200 people across 14 global offices, including major locations in Europe and the UK. Approximately one-third of its workforce is based in India, with a large engineering hub in Bengaluru and a corporate office in Gurugram. The Bengaluru office is Harness’s largest development center outside the United States.
Future Plans and Expansion
The newly raised funds will support expanded research and development, the hiring of “hundreds of engineers” in Bengaluru, and the enhancement of automated testing, deployment, and security features. Harness also aims to improve the precision of its AI systems, strengthen its U.S. market presence, and accelerate international growth.
Earlier this year, Bansal merged his software observability company, Traceable, with Harness—a move that has contributed to the company’s ambitious ARR targets.
“We combined the two companies because DevOps and application security are increasingly intertwined,” Bansal explained. “This strategy has proven highly successful this year, fueling growth across both our DevOps and application security product lines.”
While the recent funding round has allowed some employees to realize partial liquidity, Bansal reiterated his intention to eventually take Harness public, though he did not specify a timeline.
“That’s the direction we’re heading,” he said regarding a future IPO. “Our business is robust, growing rapidly, and highly profitable. When the timing is right, Harness will make an excellent public company.”
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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