Funding to accelerate AI-native software development and global expansion
Bangalore, 06 August 2025 – CodeKarma, a software productivity platform pioneering domain-relevant live code intelligence, has raised $2.5 million in a pre-seed funding round led by Prosus, Accel, and Xeed Ventures. The round also saw participation from SenseAI Ventures and Stargazer Ventures.
The fresh capital will enable the company to accelerate its vision of creating autonomous, self-improving software systems. The company plans to advance its proprietary AI-driven capabilities, expand into new enterprise verticals, and strengthen its global footprint; particularly in the US market. Strategic hiring and continued product innovation will also be key focus areas as the team scales its operations.
CodeKarma’s platform transforms the way developers and engineering teams build and maintain complex software. By seamlessly integrating real-time production insights into development workflows, it empowers both human developers and AI systems to proactively identify hidden risks, eliminate unused code, and ship better software faster. Its proprietary technology creates a closed-loop feedback system that continuously improves code quality, performance, and maintainability.
Ananth Vanchi, CEO & Founder, CodeKarma, elaborated, “Our mission is to redefine how software systems evolve and improve; not after deployment, but continuously, as they’re being built. With the rapid adoption of AI-generated code, today’s systems are increasingly complex, resulting in larger, harder-to-manage codebases often lacking real-world context. CodeKarma bridges this critical gap by embedding deep production insights directly into the developer’s environment, empowering both humans and AI to create cleaner, smarter, and self-improving software. This funding is a strong validation of our vision from leading investors and will accelerate our global expansion into enterprise markets, help us attract exceptional talent, and drive continuous innovation across diverse tech stacks and enterprise environments.”
Dhruv Gupta, Investor, Prosus, said: “At Prosus Ventures, we’re committed to supporting ambitious teams building foundational AI-native products and deepening platform synergies. We are excited to support CodeKarma as they build a new category of developer tools purpose-built for this emerging paradigm. As AI accelerates software creation, the cost of unmanaged complexity, especially tech debt, will rise sharply. CodeKarma addresses this challenge by creating a persistent relay between production and development, delivering deployment-grounded intelligence that empowers both human and AI coders.”
Subrata Mitra, Partner, Accel, said: “At Accel, we aim to back founders who are creating entirely new categories and have the potential to build massive, enduring companies. CodeKarma is pioneering a fundamentally new approach to developer productivity as AI reshapes software development. By integrating with most AI-IDEs like Cursor or Copilot to create the bridge between dev time & run time for debugging & refactoring, and especially excelling at large code bases, their platform positions them to become a critical infrastructure layer for all engineering teams.”
Sailesh Tulshan, Founder & GP – Xeed Ventures, shared “CodeKarma sits at the intersection of a defining trend, AI reshaping software development, and a growing challenge: the rising architectural complexity of modern applications. Their closed-loop approach to code intelligence isn’t just innovative; it’s shaping a new category. We’re proud to back them from day zero.”
Rahul Agarwalla, Managing Partner, SenseAI Ventures, added: “We’re proud to back CodeKarma as they redefine how software is made better. At SenseAI Ventures, we invest in AI-first startups solving foundational challenges with scalable innovation, and CodeKarma fits that vision perfectly. Codebases have become large and complex and will be even more so with AI generating code. CodeKarma empowers organizations to navigate this complexity by embedding real-time production intelligence directly into software development workflows. They’re not just improving productivity, they’re enabling a new era of self-improving software. We believe they’re poised to lead a powerful shift in developer tooling, and we’re excited to support their global and enterprise-scale ambitions.”
Utkarsh, Tech Advisor to CodeKarma added, “We are heading into an era of self-evolving software – where reliability and intelligent adaptability are at the core, empowered by seamless collaboration between smart developers and their AI co-pilots or new age AI agents. CodeKarma is born from this vision, as a code intelligence platform built for the AI era. Ananth and I are proud to be shaping this transformative product out of India.”
CodeKarma’s technology is particularly relevant for industries such as e-commerce, fintech, and logistics, where large, evolving codebases and rapid deployment cycles demand deeper visibility, performance clarity, and smarter optimization. Unlike traditional observability or static analysis tools, it provides dense, actionable insights directly in developers’ tools; closing the loop between code creation, production behavior, and continuous improvement.
The company’s long-term vision is to build the definitive platform for autonomous software intelligence, enabling systems to not just self-monitor, but self-optimize and self-correct in real time.
