Opkey secures USD $47 million to enhance AI ERP solutions

Opkey, the AI continuous test automation platform for enterprise systems, has announced the successful raising of USD $47 million in Series B funding. The funding round was led by PeakSpan Capital, with continued backing from existing investors.

The latest investment is aimed at bolstering Opkey's mission to deliver continuous assurance and streamline cloud ERP transformation programs. The funding will facilitate technological advancements, product development, and enhance the company's innovation culture. Additionally, Opkey plans to expand its sales and marketing teams to grow its global market presence and invest in research and development to pioneer the emerging "ERP Ops" category.

Opkey's CEO and Co-founder, Pankaj Goel, stated, "Opkey's AI-driven platform empowers CIOs to ensure successful ERP transformation and modernization programs by revolutionising the way enterprises approach Cloud ERP migration. 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."

Goel highlighted the challenges enterprises face while modernising ERP systems, often referred to as a SaaS Mess. "Multiple best-of-breed applications require constant updates and testing to maintain seamless business processes. Traditional manual ERP testing methods introduce significant risks, threatening transformation initiatives and potentially leading to financial and reputational harm," he explained.

Opkey's AI and machine learning capabilities dramatically reduce the time and effort required for ERP testing. The company's AI-powered assistant, Wilfred, utilises a patent-pending GenAI Test Mining algorithm to dynamically generate tests tailored to client-specific configurations and customisations. This approach can accelerate ERP changes by 50% and reduce defect rates by over 70%.

Partner at PeakSpan Capital, Sanket Merchant, expressed enthusiasm about the collaboration. "We're excited to partner with Pankaj and the Opkey team as they pioneer the next frontier of innovation in ERP modernization, delivering unparalleled assurance through continuous, AI-enabled test automation."

"As thematic B2B software investors, we understand the criticality of ERP and other enterprise applications (e.g., HRIS, CRM), which represent significant investments and operate as the central nervous system powering global business operations."

Merchant further elaborated on the existing inefficiencies in the ERP life cycle. "Given the inefficiencies that exist today in all phases of the ERP life cycle, a new category of solutions will emerge, utilising 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."

"We could not be more energised to support Opkey's vision for ERP Ops, which will help CIOs with their ERP transformation and modernization initiatives by providing a common data fabric, resilience in their technology strategy, and optimised business performance," he said.

Opkey has more than 200 enterprise customers, with 72% of them listed in the Fortune 1000. The company also partners with major systems integrators such as KPMG, Huron, and PwC to integrate AI into their implementation and managed services projects.