Harness raises $240 million to automate AI's "after-code" gap, reaching a $5.5 billion valuation

AI DevOps startup Harness, founded in 2017 by serial entrepreneur Jyoti Bansal, is on track to cross $250 million in annual recurring revenue in 2025 after raising a fresh $240 million Series E round that values the company at $5.5 billion post-money, a 49% jump from its 2022 valuation. Led by Goldman Sachs with a $200 million primary investment and a planned $40 million tender offer involving IVP, Menlo Ventures, and Unusual Ventures to provide employee liquidity, the funding brings Harness’s total equity raised to $570 million. The San Francisco–based company uses AI agents and a software delivery knowledge graph to automate the “after-code” phase of software development—testing, security, governance, and deployment—which consumes nearly 70% of engineering time, helping enterprises manage rising AI-generated code while reducing risk. With more than 1,000 enterprise customers including United Airlines and National Australia Bank, over 1,200 employees worldwide, and a major engineering presence in Bengaluru, Harness plans to use the new capital to expand R&D, hire hundreds of engineers in India, strengthen its global go-to-market efforts, and further integrate DevOps and application security following its recent merger with observability firm Traceable, as Bansal continues to position the company for a future IPO.