Following a report by Chennai based database company Venture Intelligence, Composio, a San Francisco–based and Bengaluru-engineered startup, captured our Deal of the Week spotlight by raising $25 million from Lightspeed Venture Partners, joined by investors Elevation Capital and Together Fund, as well as angel backers like Dharmesh Shah (HubSpot), Gokul Rajaram, Guillermo Rauch (Vercel), Sohum Mazumdar (Rubrik), and others. This brings Composio’s total funding to $29 million so far.
Composio builds the infrastructure layer that enables genuine agentic AI, agents that can plug into tools like Gmail, Slack, GitHub, Salesforce, and more, and crucially, learn from experience across tasks. Just as a human employee improves on the job, Composio’s reinforcement learning layer lets an AI agent evolve, benefit from shared collective knowledge, and perform contextually over time. With over 100,000 developers using the platform and more than 200 paying customers (including YC startups like April, OpenNote, Airweave, Den, Dash), the company is already generating north of $1 million in Annual Recurring Revenue.
Why It Stands Out
What makes Composio our pick? First, it tackles a critical AI limitation: modern agents often fail to improve after deployment. Composio addresses this at the infrastructure level, they solve the learning bottleneck, not the interface or prompt design. Second, its network effect build on a developer-first model: the more tools integrated and workflows automated, the smarter the agent collective becomes. Third, its cross-border identity, developed in Bengaluru, headquartered in San Francisco, gives it access to global markets and talent pools alike.
Risks & Rewards
The potential upside is massive: as enterprises deploy more AI agents, integration complexity becomes a barrier. Composio removes that friction and offers sticky infrastructure, once embedded, replacing it would be costly. The platform’s independence from any single LLM or agent provider also makes it future-proof across emerging standards.
However, risks are real. Integration sales cycles can be long, particularly in enterprise settings. Success depends heavily on maintaining developer momentum while scaling operations and reliability for mission-critical workflows. Competition from global players—like LangChain, OpenAI Agent API orchestration tools, or developer middleware startups—poses another vulnerability. Finally, the platform’s ongoing performance will hinge on its ability to evolve alongside fast-changing LLM paradigms.
The Investor Thesis: Why Lightspeed & Co Are All In
Lightspeed’s leadership position in this round (spearheaded by partner Raviraj Jain and AI- focused investor Hemant Mohapatra) reflects a clear conviction: Composio could become the invisible glue in AI agent ecosystems. They view agentic learning infrastructure as the next foundational layer, much like Twilio for communication or Stripe for payments, in AI-firstenterprise workflows. Their investment syndicate, which includes experienced angels who have backed technical infrastructure bets before, is signaling faith not in an app but in the plumbing that powers them.
In summary, Composio’s raise signals a subtle shift in AI investing, from interface and agent novelty toward scalable, mission-critical infrastructure for enterprise automation. The platform’s developer-led adoption, early revenue traction, and unique learning-upgrade mechanism make it an infrastructure bet worth watching.
Other Notable Deals
Several other noteworthy rounds powered up this week:
Netrasemi, a Kerala-based edge-AI semiconductor company developing advanced ML system-on-chips for IoT and surveillance use cases, secured ₹107 crore ($12.4 million) in a Series A led by Zoho Corporation and Unicorn India Ventures.
SuperK, a tech-enabled value-retail chain expanding into India’s smaller towns, raised ₹100 crore ($11.5–11.7 million) in a Series B round co-led by Flipkart co-founder Binny Bansal’s 3 State Ventures and Mithun Sacheti, with participation from investor-cricketer Shubman Gill, Blume Ventures, and Xeed Ventures.
Kluisz.ai, a B2B-focused generative-AI cloud infrastructure startup founded by former OYO and Reliance Jio executives, secured $9.6 million in seed funding led by RTP Global, with participation from Unicorn India Ventures, Blume Founders Fund, Climber Capital, Ritesh Agarwal, Ritesh Malik, and others. EduFund, a full-stack education-planning and financing platform offering AI-powered advisory tools and education loans, closed a $6 million Series A round led by Cercano Management and MassMutual Ventures to expand its reach into Tier-II and Tier-III cities and enhance its product suite.
Why It Matters
This week’s activity highlights a broader shift: founders are doubling down on foundational layers, AI infrastructure, semiconductor design, fintech rails, cloud ops, and data advisory, recognizing that the future returns lie deeper in the stack, not just at consumer-facing apps.
With Composio leading the charge, investors are backing startups that build infrastructure for next-gen enterprise workflows.Meanwhile, capital is flowing not just into deeptech (Netrasemi, Kluisz.ai), but also into consumer-adjacent infrastructure plays (EduFund, SuperK), signaling balanced bets across growth, innovation, and scale.
Keep an eye on how these companies deploy funds in the coming months, and watch for more infrastructure-focused innovation as India continues its digital transformation.
