RapidCanvas raises USD $29 million in Series B round

RapidCanvas has raised USD $29 million in a Series B funding round led by Vertex Ventures SEA & India, bringing its total funding to USD $52.5 million.

Hitachi Ventures also participated, alongside existing investors Accel, Peak XV Partners, Valley Capital Partners and Titanium Ventures.

The Austin-based company said the latest raise follows eightfold growth in annual recurring revenue over the past six quarters. It offers a managed artificial intelligence model that combines software with engineers who build and run custom applications for clients on a subscription basis.

RapidCanvas is targeting companies with annual revenue of USD $100 million to USD $10 billion, a segment it describes as underserved by the current AI market. It says many of these businesses have AI budgets and pressure from senior management to deploy the technology, but lack either the specialist staff to implement software tools or the appetite for large consulting projects.

More than 75 enterprises across manufacturing, financial services, retail, business services and infrastructure have used applications built on the platform so far this year, according to RapidCanvas. Those applications have made 1.4 million AI-led decisions, and more than 40% of customers now run multiple AI use cases in production.

Expansion plans

RapidCanvas will use the new funding to expand its field AI engineering team across the US, Brazil and India. It also plans to add staff to its go-to-market teams and broaden its network of private equity and advisory partners.

The company will also invest in three parts of its platform: its Enterprise Context Engine, which captures business process information and internal decision history; its Visual Development Canvas, used to build custom AI tools; and its Operational Harness, used to manage and govern deployed systems.

RapidCanvas said its Visual Development Canvas includes a skills library based on existing code, giving each new solution a starting point built on previous work. Its Enterprise Context Engine is designed so customers retain ownership of the business context captured in the system.

The funding comes as companies continue to test whether AI projects can move from pilot schemes into live business operations. RapidCanvas said discussions with more than 400 business leaders indicated that most C-level executives expect a return on AI spending within six to 12 months, but few have moved beyond proofs of concept.

Rahul Pangam, Co-Founder and Chief Executive Officer of RapidCanvas, said the company's recent growth reflected a broader shift in the market.

"AI can be the great equalizer, but so far its biggest wins have gone to the Fortune 100. We want to give every enterprise the same opportunity," said Rahul Pangam, Co-Founder and Chief Executive Officer of RapidCanvas.

"Vibe coding has made it easy to start building with AI. Getting AI into production reliably and safely still remains the biggest gap. Our growth over the past six quarters is evidence that AI in enterprises is moving beyond pilots into production and real operations," Pangam said.

Vertex Ventures SEA & India, which led the round, said it saw demand in the way customers added more use cases over time.

"Most enterprises are still searching for real returns on their AI spend. RapidCanvas delivers them by pairing an AI platform that compounds with every deployment and field AI engineers who own the outcome end to end. The proof is in the customer pull: enterprises keep expanding into new use cases and functions. We're excited to lead this Series B and back a team that has built and scaled this playbook before," said Piyush Kharbanda, General Partner at Vertex Ventures SEA & India.