❯ RapidCanvas raises $29 million to build custom AI apps for companies with a platform plus engineers

Vertex leadsRapidCanvas announced on October 16 a $29 million Series B led by Vertex Ventures SEA & India, with Hitachi Ventures and existing investors Accel and Peak XV, for $52.5 million in total. It is based in Austin, Texas, and led by co-founder and CEO Rahul Pangam.

Selling software and people togetherRapidCanvas builds custom AI apps: engineers learn the customer’s processes, build on its platform and keep running the app, all in one subscription. It targets companies with over $100 million in revenue that have AI budgets but no clear path to results. Pangam says AI’s biggest wins have so far gone to the Fortune 100.

The platform does 60% of the workAccording to SiliconANGLE, the platform handles about 60% of building an AI app in three parts: gathering data and mapping company terms and workflows, ready-made modules for tasks like login and document processing, and checks on reliability, such as whether AI summaries match their source.

Revenue up 8xMore than 75 enterprises in manufacturing, finance and retail have made 1.4 million AI-led decisions with its apps this year; over 40% run several use cases. The company says recurring revenue grew 8x over six quarters. It raised $16 million in 2024.

The hard part is scalingFor companies without AI teams, a provider that does it all is easiest. The difficulty is RapidCanvas’s: if each customer needs more engineers, costs rise with revenue. Hitachi Ventures says it backs the company’s ability to make custom delivery increasingly repeatable.

▮ SIGNALWhen companies buy AI they are also buying people, and only providers that keep shrinking the “people” part can earn software-company margins.