Ema, a startup utilizing teams of AI agents to streamline corporate processes in HR, IT, and finance, has secured $77 million in a fresh funding round as it seeks to assume more responsibilities traditionally managed by enterprise software and IT services.

The Series B funding round was spearheaded by Bengaluru-based venture capital firm Creaegis, with current investors Accel, Section 32, and Prosus increasing their holdings. This financing elevates the startup’s total funding to $140 million and more than quadruples its valuation since its last funding round in 2024. (Ema chose not to reveal its latest valuation.) The round was entirely composed of primary equity, without any debt or secondary transactions, as confirmed to TechCrunch by the startup.

The investment comes at a time when AI is starting to vie for funds that businesses have historically allocated to enterprise software and IT services. Startups, prominent AI labs, and well-established software firms are all competing to secure a share of that expenditure.

Founded in 2023 by former Google and Coinbase executive Surojit Chatterjee and ex-Okta executive Souvik Sen, Ema is looking to strengthen its presence in that sector. The startup implements its technology, referred to as “AI employees” — systems that manage various AI agents. These assist in executing multi-step business processes across a company’s existing applications, rather than tackling just one task at a time.

Chatterjee envisions that model leading to a reduced dependency on traditional software products for companies, including those offered as software-as-a-service (SaaS). Ema initially “wraps” around an enterprise’s current applications, he stated, before clients can decrease their reliance on some of those products — and, in certain instances, eliminate them completely.

“Numerous customers are already on the path to entirely replace [large SaaS applications], minimizing their dependence on them, as they are becoming akin to mere databases,” Chatterjee remarked.

Capitalizing on AI labs’ initiatives

Recently, leading AI firms have increasingly advanced into the enterprise sector where Ema operates. Anthropic has intensified its efforts to integrate Claude into the fundamental operations of companies, encompassing financial and legal tasks. Likewise, OpenAI has formed teams of forward-deployed engineers who collaborate with clients to implement AI into production.

Nevertheless, Chatterjee does not perceive the cutting-edge AI labs as direct adversaries. He informed TechCrunch that Ema’s software can leverage over 150 models, including cutting-edge and open-source models, while the startup concentrates on the domain expertise, integrations, and orchestration necessary to automate business processes comprehensively.

“Advancements in frontier models are genuinely advantageous to us,” Chatterjee asserted.

Ema’s methodology is already making headway. The startup has secured more than 50 active enterprise agreements, along with over 1 million active enterprise users, and has managed over 5 million actions and inquiries. Its clientele includes NTT DATA, Hitachi, ADP, PwC, Google, KPMG, Wipro, and Microsoft.

Over the last two years, Ema reported a 50-fold revenue increase, with revenue bookings exceeding $150 million. Chatterjee clarified that the bookings figure represents the total value of multiyear contracts, including contracts spanning two and three years, rather than indicating annual recurring revenue. He, however, opted not to share the startup’s current annualized revenue run rate.

Chatterjee shared with TechCrunch that more than 90% of Ema’s clientele has expanded beyond their original use case, with some employing the technology across numerous workflows. The startup’s net dollar retention rate is approximately 180%, he mentioned, indicating that existing clients are increasing their spending with Ema over time.

Ema is also shifting its focus beyond the software itself. AI, Chatterjee noted, can assume control over some of the implementation, integration, and consulting tasks historically assigned to IT services firms regarding enterprise software.

“Many of the service firms are collaborating with us,” Chatterjee stated. “They are also significantly altering or disrupting their business models as they recognize that the human-centric model may not be the most effective approach moving forward.”

Despite undertaking responsibilities traditionally managed by software and service providers, Chatterjee noted that Ema has sustained gross margins of nearly 80%. The startup, he pointed out, necessitates less human assistance as its AI systems adapt from deployments, which helps enhance margins over time.

Ema also does not bill clients based on the number of software seats or AI tokens utilized. Instead, Chatterjee explained, its pricing is linked to task completion and business results.

Much of Ema’s newly acquired capital will be allocated toward augmenting its go-to-market operations, particularly sales and marketing, after dedicating its initial years primarily to product development, Chatterjee stated. The Mountain View-based startup has expanded to nearly 200 employees and maintains offices in Bengaluru, London, and Vancouver.

Ema has primarily concentrated on clients in the U.S. and Europe thus far. However, it now intends to extend into new markets within the next year, especially across Asia-Pacific, South America, and certain regions of the Middle East.