EOITEK, a Chinese startup that develops big data and artificial intelligence (AI)-based products to help clients enforce IT operations, has secured $60 million in a Series C round of financing led by blockchain-focused investment firm M31 Capital.
Venture capital firm GGV Capital, Singapore-based, Temasek-owned ST Telemedia, and other existing shareholders participated in the new round. Investment bank Lighthouse Capital, the exclusive financial advisor of the deal, announced in a WeChat post on Tuesday.
With the completion of the Series C round, Shanghai-based EOITEK has raised a total of over 500 million yuan ($77.4 million) in the last 18 months. In its latest round, the startup closed a Series B+ round of at least $10 million from GGV Capital in March 2020.
EOITEK was founded in 2016 to deliver real-time data analytics to enable data-driven operational IT decision-making while reducing the total cost of ownership. Leveraging big data and AI, the startup helps clients discover the value of operational and maintenance data to promote enterprise digital transformation.
It has developed Sharplook, a centralised platform designed to support large organisations in log data analysis, troubleshooting, event management, and capacity prediction. Aided by machine learning, the product provides intelligent processing capacity for IT operations; reduces the noise of a large number of alarm events; and correlates different data sources for root cause analysis.
EOITEK’s products have been adopted by clients in banking, security, energy, and transportation, among others. Its clients include UnionPay, China’s Bank of Communications, Shanghai Pudong Development Bank and others.
“The intelligent upgrade of data in China’s IT infrastructures will yield huge dividends. The market is just beginning to explode, with a shift from a sales-driven to a product-driven business model,” said Daniel Li, vice president of Lighthouse Capital, in the post.
“EOITEK is equipped with strong data consolidation and product commercialisation capabilities. It focuses on products that solve major pain points, with great sales and services track record across various industries, as well as a strong client retention ability.”
Globally, the market size for AIOps, or artificial intelligence for IT operations, is estimated at $1.5 billion with a compound annual growth rate (CAGR) of about 15% between 2020 and 2025, according to research and advisory firm Gartner.
EOITEK plans to use the new proceeds to speed up customer acquisition across its focused sectors including financial, telecom, high-end manufacturing, and energy. It will continue to increase R&D investment and improve the product line.