# Rafay Systems

Startup profile on Capital Atlas: https://capitalatlas.ai/startups/rafay-systems

- Industry: Software
- Headquarters: Sunnyvale, US
- Website: www.rafay.co
- Total disclosed funding: $37M
- Latest round: Series B (Aug 31, 2021)
- Investors on record: 8

## About

Rafay Systems, Inc. specializes in offering a comprehensive Platform-as-a-Service (PaaS) solution, focusing on the efficient management of Kubernetes and AI infrastructure for organizations seeking scalability and operational efficiency.Founded in 2017 in Sunnyvale, US, Rafay Systems, Inc. provides a robust platform for managing Kubernetes and AI infrastructure. The company was co-founded by Hanumantha Kavuluru and Haseeb Budhani, who also serves as CEO. In August 2021, Rafay closed a Series B funding round, raising USD 25 mn led by Forgepoint Capital, with additional participation from Costanoa Ventures, Moment Ventures, and Ridge Ventures. This round marked the company's third deal, bringing the total amount raised to USD 25 mn, with a current valuation of USD 112.582 mn.Rafay Systems specializes in providing a comprehensive Platform-as-a-Service (PaaS) solution that primarily focuses on streamlining the management of Kubernetes and AI infrastructure. The core offerings include the Rafay Platform, which enables organizations to simplify the complexities associated with managing CPU- and GPU-based environments through a multi-tenant GPU PaaS experience. This service empowers platform and DevOps teams to effectively deliver AI/ML applications with built-in orchestration, automated workflows, and enhanced operational efficiencies. Key use cases addressed by Rafay include accelerating AI application delivery, standardizing Kubernetes environments, and enabling self-service compute consumption for development teams. The company serves a diverse client base that includes enterprise clients and cloud service providers across various geographical markets such as North America, Europe, and Asia, ensuring they can quickly provision compliant environments and optimize resource utilization.Rafay Systems operates on a subscription-based revenue model, where clients pay for access to their platform's features and capabilities. The transactions typically occur directly between Rafay and its enterprise clients, who utilize the platform to manage their Kubernetes and AI infrastructure. Clients subscribe to different tiers of service based on their operational needs, which may include features like standardized Infrastructure as Code (IaC) templates, compliance management, and automated deployment workflows. Flagship offerings such as their multi-tenant GPU PaaS are integral to this model, providing clients with the necessary tools to facilitate rapid application development and deployment. The company emphasizes a structured pricing plan that aligns with the service levels and capabilities utilized by its customers, ensuring that the business model supports both scalability and cost efficiency for enterprise operations.Rafay Systems, Inc. plans to leverage the USD 25 mn raised in Series B funding to enhance its engineering team and expand its sales, marketing, and customer success teams. While specific new products were not detailed, the company is focused on driving innovation in its platform offerings. Rafay is targeting further expansion into new markets, particularly within North America, Europe, and Asia, to diversify its client base and increase service accessibility. The funding will support these initiatives, facilitating the growth and scalability of the company’s operations.

## Funding rounds

- Series B, Aug 31, 2021, $25M — Ridge Ventures, Costanoa Ventures, Moment Ventures, Forgepoint
- Series A, Sep 13, 2019, $8M — Ridge Ventures, Costanoa Ventures, NTT DOCOMO Ventures, Moment Ventures
- Seed, Apr 4, 2018, $4.1M — Menlo Ventures, Floodgate, Costanoa Ventures, Moment Ventures, Plug and Play

## Investors

- Menlo Ventures (https://capitalatlas.ai/funds/menlo-ventures) — Seed
- Floodgate (https://capitalatlas.ai/funds/floodgate) — Seed
- Costanoa Ventures (https://capitalatlas.ai/funds/costanoa-ventures) — Seed, Series A, Series B
- Moment Ventures (https://capitalatlas.ai/funds/moment-ventures) — Seed, Series A, Series B
- Plug and Play (https://capitalatlas.ai/funds/plug-and-play) — Seed
- Ridge Ventures (https://capitalatlas.ai/funds/ridge-ventures) — Series A, Series B
- NTT DOCOMO Ventures (https://capitalatlas.ai/funds/ntt-docomo-ventures) — Series A
- Forgepoint (https://capitalatlas.ai/funds/forgepoint) — Series B