Tessera Labs, an enterprise AI platform provider, has raised $60M in Series A funding led by Andreessen Horowitz. The company offers a multi-agent AI platform that automates ERP transformations across SAP, Salesforce, Workday, and Oracle, compressing timelines from years to weeks while cutting costs by more than half. The capital will accelerate platform development and enterprise deployments.
AI Targets $500B Systems Integration Market
The timing aligns with urgent demand for ERP modernization. SAP ECC support ends in 2027, leaving thousands of environments needing migration. Celonis raised over $1.77B with a $13B valuation after its 2022 round. UiPath has raised $1.96B total. Tessera's approach focuses on execution rather than analysis alone.
Enterprises Face Massive Consulting Costs
Companies spend over $500 billion annually on system integrators and consultants for migrations and maintenance. 60-70% of IT budgets go to external human-led services. Traditional projects often span multiple years with frequent cost overruns and failure risks.
Multi-Agent AI Executes Transformations
Tessera deploys domain-specific agents pre-trained on thousands of enterprise landscapes to handle code remediation, data harmonization, and process orchestration. Unlike Celonis or SAP Signavio, which focus on process intelligence, Tessera executes end-to-end changes with built-in governance for regulated industries. ServiceNow offers broader workflow tools but lacks Tessera's depth in legacy ERP migration.
"Off-the-shelf AI handles documentation, chatbots, even code generation. But can it map data across a heavily customized JD Edwards environment, modern Oracle deployments, and dozens of customized SAP instances to build a single unified template?" — Kabir Nagrecha
a16z Leads Oversubscribed Round
Andreessen Horowitz led the round at a $320M post-money valuation, with participation from Foundation Capital, Myriad Venture Partners, and Osage University Partners. The investment signals conviction in AI-native alternatives to traditional consulting models, backed by Seema Amble's focus on enterprise AI.
ERP Market Expands Amid Modernization Push
The ERP software market stands at $83.2B in 2026 and is projected to reach $157.1B by 2033. Cloud ERP is expected to grow from $66B in 2025 to $222B by 2033. SAP S/4HANA alone is forecast to expand from $24.68B in 2026 to $53.36B by 2034. Broader global systems integrator services are projected to rise from $500B in 2024 to $800B by 2033.
Prodigy Founder Brings Deep Expertise
CEO Kabir Nagrecha earned a PhD in computer science from UC San Diego at age 20 and previously conducted AI research at Meta and Netflix. He gained early exposure to ERP projects assisting his father at Jacobs Engineering. Co-founder Ming Chang brings former SAP executive experience with Fortune 500 program leadership.
Governance Focus Wins Regulated Deals
Customers include pharmaceutical giant Merck and Xerox, with reported annual savings exceeding $100 million at large enterprises. The platform's audit-ready logging and identity controls address compliance needs in pharma and finance.