Wallarm, the leader in API and AI security, announced the closing of the company’s $55 million in Series C investment led by Toba Capital. The funding will enable Wallarm to continue massively scaling its top line and innovating ahead of the curve in the API Security market by extending the company’s offering to further protect APIs in the AI era.
The adoption of AI by attackers is fundamentally changing the API threat landscape, introducing new security risks and vulnerabilities. AI not only allows attackers to develop and execute exploits at an incredible pace, it also dramatically expands the target surface by introducing new APIs and AI applications. This massive shift in the threat landscape is already underway, with organizations deploying thousands more APIs that require protection, and attackers that can operate exponentially faster. Traditional security tools aren’t capable of defending the modern, AI-enabled organization. API security with real-time blocking is now a requirement; Wallarm is the only vendor built from the ground up to block API attacks in real-time.
“At Wallarm, our mission has always been clear: deliver powerful, proven API protection that actually stops real-world threats,” said Ivan Novikov, CEO and co-founder of Wallarm. “This latest round of investment marks a pivotal moment—not just for our company, but for the security industry at large. We’re doubling down on innovation to equip security teams with the intelligence and automation they need to stay ahead of increasingly sophisticated and targeted API attacks. Our goal is to give security teams precision tooling that integrates natively with modern stacks, and stops threats before they become incidents.”
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Wallarm closed 2024 with record growth and net revenue retention of 134% across enterprise accounts, including customers from financial services, manufacturing, technology and other industries. Wallarm’s growth is driven by the company’s ability to rapidly deliver innovative technology to market, including their most recent breakthrough agentic AI protection feature. The new capability extends Wallarm’s industry leading API protection capabilities to monitor AI interactions, protecting against AI specific attacks like prompt injection, jailbreaks, API logic abuse, and more.
“Wallarm is shaping the future of API and AI security. The team has built an incredibly robust, high-performance platform that’s already proven in complex enterprise environments. As AI-powered attacks drive new demands for the API security category, this financing round will enable Wallarm to continue to transform the API security landscape with its unique focus on real-time protection,” said Vinny Smith, Founding Partner, Toba Capital.
This round of funding is underpinned by Wallarm’s significant momentum and validation over the past year:
- Wallarm has made key strategic hires: Morgan Jay, President and CRO, Michelle Gerson, VP of Marketing, and Greg Deisher, CFO to align with its next phase of growth.
- Wallarm introduced Agentic AI Protection capabilities to provide security against Agentic AI attackers, extending Wallarm’s API Security Platform to actively monitor, analyze, and block attacks against AI agents.
- Wallarm introduced the industry’s first Penetration Testing Service for Agentic AI Systems, helping organizations assess and secure their AI-driven systems from emerging threats.
- Wallarm also released the world’s first API Honeypot Report highlighting API attack trends. The findings revealed critical insights into the growing threat landscape for APIs, showcasing their increasing vulnerability to rapid discovery and exploitation.
- Driven by AI Expansion, Wallarm Closed 2024 with record growth and retention of 134% across enterprise accounts – with nearly zero churn.
Wallarm continues their established momentum with the release of their next-gen Security Edge product to deliver resilience, observability, and performance for API security.
Source: PRNewswire