Jan 28 (Reuters) - AI enterprise service management firm Atomicwork said on Tuesday it has raised $25 million in a Series A funding round led by venture capital investors Khosla Ventures and Z47.

The fundraise valued San Francisco-based Atomicwork at $150 million, according to a source familiar with the matter.

Other investors who participated in the round include technology-focused investment firm Battery Ventures, India-based venture funds Blume Ventures, and Peak XV Partners.

WHY IT'S IMPORTANT

Atomicwork provides AI-integrated service management software that helps businesses manage their IT workflows, with a focus on mid-market companies. Some of its customers include software company Zuora ZUO.N and consumer finance firm Pepper Money.

The funding will help Atomicwork scale its enterprise AI agents, invest in product expansion and improved platform support, the startup said.

CONTEXT

AI startups have been driving a resurgence in venture capital funding, with nearly half of all U.S. venture capital dollars raised last year going to these companies.

Founded in 2022, Atomicwork has launched "agentic AI services" that are increasingly popular with IT teams seeking to reduce workloads and automate routine tasks.

Microsoft's MSFT.O Copilot and ServiceNow's NOW.N AI are among the leading players in the field, with their AI agent software being used by companies around the world to improve productivity and reduce costs.

BY THE NUMBERS

Atomicwork had raised a total of $14 million in seed funding in September, and is backed by more than 40 global chief information officers, chief technology officers and industry veterans.

(Reporting by Kritika Lamba in Bengaluru; Editing by Tasim Zahid)

((Kritika.Lamba@thomsonreuters.com;))