Opkey, a startup based in Dublin, CA, has secured $47 million in Series B funding to support its AI platform designed to help organizations test enterprise resource planning (ERP) software. The company has already gained significant traction in the market, with over 200 large enterprise customers and partnerships with notable system integrators like KPMG and PwC.
Opkey’s platform addresses a critical need in the market, as cloud architecture and software-as-a-service (SaaS) solutions have become foundational for businesses undergoing digital transformation. While these technologies offer numerous benefits, they also come with challenges, such as vulnerabilities and inconsistencies that can disrupt network operations. This is where Opkey’s AI-powered solution comes into play.
The co-founders of Opkey, Pankaj Goel, Avinash Tiwari, and Lalit Jain, all have extensive experience in the ERP industry, having worked for companies like Adobe and Oracle. They understand the importance of proper software testing and the potential consequences of overlooking it. ERP systems are highly interconnected, and any issues or conflicts between different software components can lead to a complete system failure.
Goel highlights the continuous updates and changes in cloud applications, which can impact the functionality of existing systems. He estimates that an organization typically integrates around seven or eight ERP systems, meaning any changes in the ecosystem require thorough testing. This creates a testing “hell” for enterprises, which Opkey aims to resolve.
Opkey’s platform focuses on automating testing and data management processes, addressing areas like integrations, updates, upgrades, and user acceptance. The company covers a wide range of ERP systems, including Oracle, Workday, Coupa, Veeva, Salesforce, SAP, Microsoft Dynamics, UKG, and Trackwise.
Sanket Merchant, the partner at PeakSpan Capital, who led the investment, believes that there will continue to be strong demand for services like Opkey’s due to the evolving nature of IT. However, competition from other players in the market, such as Leapwork and Katalon, remains a potential challenge. Additionally, larger ERP players may also consider entering this space.
The importance of automated testing in the ERP realm cannot be overstated. According to Merchant, businesses spend a significant amount on ERP software, with an estimated $73 billion annually across both small and large organizations. The success of ERP deployments and migrations is crucial for businesses’ revenue and brand reputation.
Opkey’s funding round reflects the growing recognition of the value of AI in enterprise IT. While services like ChatGPT receive attention for their ability to assist with writing and information retrieval, Opkey’s success demonstrates that AI is making significant inroads into routine enterprise applications. The company’s platform fills a critical gap in the market, ensuring the smooth operation of ERP systems and reducing the risk of costly failures.
