Tessera Labs raises $60M led by Andreessen Horowitz to transform ERP systems with AI

Enterprise software has a reputation for moving at a glacial pace. Multi-year ERP projects, ballooning budgets, and missed timelines have long been accepted as the cost of doing business. Tessera Labs is making a direct bet that this model is ready to break.

The Silicon Valley startup announced $60 million in oversubscribed funding led by Andreessen Horowitz, with participation from Foundation Capital, Myriad Venture Partners, and Osage University Partners. The timing is deliberate. The announcement lands as the global SAP ecosystem gathers in Orlando, where the pressure to modernize legacy systems is front and center.

Tessera Labs is going after one of the most stubborn problems in enterprise IT. ERP systems sit at the core of large organizations, yet upgrading them often stretches across years and drains millions of dollars. Many companies start these projects knowing delays are likely.

“Enterprise transformation has never been more urgent, and the technology to accelerate it has never been more powerful,” said Kabir Nagrecha, Co-founder and CEO of Tessera Labs. “Tessera Labs exists to close that gap, delivering in weeks what traditionally takes years, with the governance and reliability that mission-critical programs demand.”

As ERP modernization stalls, Tessera Labs raises $60M to rewrite the playbook with AI

The pitch is simple on the surface. Replace slow, manual transformation work with AI systems that can understand business requirements, coordinate changes across systems, and keep operations running without disruption. Underneath, the company is building a multi-agent platform trained on thousands of enterprise environments and decades of transformation experience.

Early customers suggest the idea is gaining traction. Tessera says it is already working with a top-five global biopharmaceutical company on a multi-year ERP overhaul, along with a Fortune 500 firm in document technology and business services. These are the kinds of organizations that tend to move cautiously, which makes early adoption a signal worth watching.

For Andreessen Horowitz, the bet goes beyond incremental improvement. The firm has backed companies like Databricks and Harvey that reshape how enterprises operate, and it sees Tessera Labs in a similar light.

“ERP systems are the backbone of every major company, but modernizing them has been prohibitively slow and expensive,” said Seema Amble, Partner at Andreessen Horowitz. “Tessera’s platform represents a genuine category shift, not just making transformation faster, but making it predictable, governed, and continuous. That changes the economics for CIOs and unlocks transformation at a scale we haven’t seen before.”

The size of the opportunity is hard to ignore. The global systems integrator market reached $500 billion in 2024 and is projected to approach $800 billion by 2033. That spending reflects how central transformation has become for large enterprises, even as many projects struggle to deliver on time.

Tessera’s approach leans on automation at every stage. The platform captures requirements in natural language, orchestrates updates across ERP, HCM, CRM, and procurement systems, and keeps a record of every change. The goal is to bring speed without losing the controls that large organizations demand.

The founding team blends AI research with deep enterprise experience. Engineers and researchers come from companies such as Meta, Netflix, and Apple, as well as veterans from SAP’s core product and MaxAttention teams. That mix matters in a market where credibility often determines whether a project even gets off the ground.

“We’re hiring people who’ve built AI systems at scale and people who’ve led transformations at the world’s largest organizations,” Nagrecha added. “It’s a rare combination, and it’s what makes Tessera Labs work.”

The company says its system can shrink transformation timelines from years to weeks and cut costs by more than half. Those claims will face scrutiny as deployments scale. Large enterprises tend to test new approaches carefully before committing to them across the business.

Even so, the direction is clear. Companies are looking for ways to move faster without taking on more risk. If Tessera Labs can deliver on that promise, it could reshape how enterprise systems evolve and how much companies are willing to spend to get there.