Wallarm Raises $55M Series C to Revolutionize API Security - InforCapital

API and AI security leader, Wallarm (San Francisco, California), has closed a $55 million Series C investment round led by Toba Capital. The funding aims to enhance Wallarm's growth trajectory and innovation in the API security market, expanding its protection services to cater to the AI era.

AI adoption by hackers is changing the API threat landscape, introducing new risks and vulnerabilities. AI allows attackers to create and execute exploits rapidly, expanding the target surface with new APIs and AI applications. With organizations deploying more APIs that require safeguarding and attackers operating at higher speeds, traditional security tools are proving inadequate. Real-time blocking API security has become a necessity, and Wallarm is the only vendor that offers this service, built from the ground up.

CEO and co-founder of Wallarm, Ivan Novikov, stated that the company's mission is to provide potent, proven API protection capable of withstanding real-world threats. The latest funding round is a significant milestone for Wallarm and the security industry at large. The company plans to double down on innovation, providing security teams with the intelligence and automation necessary to stay ahead of sophisticated and targeted API attacks. The aim is to equip security teams with precise tools that integrate seamlessly with modern stacks, preventing threats from escalating into incidents.

Wallarm ended 2024 with record growth and net revenue retention of 134% across enterprise accounts, spanning various industries such as finance, manufacturing, and technology. The company's growth is fueled by its ability to rapidly bring innovative technology to the market, including its breakthrough agentic AI protection feature, which extends Wallarm's leading API protection capabilities to monitor AI interactions and defend against AI-specific attacks.

Vinny Smith, Founding Partner of Toba Capital, expressed his confidence in Wallarm's mission to reshape API and AI security. He highlighted that the team's robust platform has proven its worth in complex enterprise environments. As AI-powered attacks create new demands for API security, the recent financial backing will enable Wallarm to continue transforming the API security field with its unique focus on real-time protection.

Wallarm's funding round is bolstered by its significant momentum and validation over the past year. The company has made strategic appointments including Morgan Jay as President and CRO, Michelle Gerson as VP of Marketing, and Greg Deisher as CFO to align with its next growth phase. Wallarm has also introduced agentic AI protection capabilities and the industry's first Penetration Testing Service for agentic AI systems. Furthermore, Wallarm released the world's first API Honeypot Report providing critical insights into the growing API threat landscape and demonstrating their increasing vulnerability to rapid discovery and exploitation.