Tessera Labs Raises $60M Series A to Deploy AI Agents for Enterprise ERP Transformations

Tessera Labs emerged from stealth on or before May 5, 2026, after raising $60 million in a Series A funding round that valued the startup at $320 million. The round was led by Andreessen Horowitz with participation from Foundation Capital, Myriad Venture Partners and Osage University Partners. Seema Amble, a partner at Andreessen Horowitz, led the investment.

Kabir Nagrecha, 22, founded Tessera Labs with Ming Chang. The company deploys autonomous AI agents trained to handle end-to-end complexity of ERP transformations, from mapping intricate business processes to automating code reconfiguration for massive system upgrades. Large enterprises using Tessera Labs are saving over $100 million a year, Nagrecha said.

"The savings numbers are big," Nagrecha said. " Tessera Labs is working directly with Merck and Xerox and is in trials with a handful of other Fortune 500 enterprises as of May 2026, Nagrecha said. The approach replaces what he described as a "manual, human-based model" with "digital labor," shrinking ten-month coding cycles to weeks and reducing the need for hundreds of consultants.

Nagrecha learned the challenges of enterprise IT transformations early. Raised in London and California, he spent his childhood as the unofficial assistant to his father, who worked in high-level IT roles at firms like Jacobs Engineering. By age eight he was listening to 50-person stand-ups for 1,000-person projects and helping create executive PowerPoint briefings on ERP systems that manage tax, accounting and supply chain functions.

He witnessed the frustrations of the traditional system-integrators model, where projects were outsourced to consulting firms and frequently ran over budget. "There was this constant frustration of, 'Hey, how can we not run this in-house? Why do we not have the capability to do this ourselves?

Where's the expertise gap? '" Nagrecha said. After starting college at age 13, Nagrecha earned a PhD in AI systems by age 20. He worked as an AI researcher at Meta and at Netflix before founding Tessera Labs to address the inefficiencies he observed.

The market opportunity is substantial. 4 trillion in 2024. According to Arthur D. 6% of revenue.

Between 60% and 70% of telecommunications companies' IT budgets is consumed by external human-led services for maintenance, upgrades and migrations, Nagrecha said. Seema Amble described enterprise transformation as a "sneaky big" market. "This is something that every CIO complains about and hates, but nobody in the outside world knows that this is a thing that companies spend a lot of money on," Amble said.

@Forbes reported that by replacing armies of consultants with AI agents, Tessera Labs aims to shrink nine-figure service contracts by an order of magnitude. The company’s agents are designed to perform work traditionally handled by firms such as Accenture, Deloitte and Ernst & Young. Nagrecha’s early exposure to ERP projects shaped his conviction that in-house capability was missing.

He watched multi-year projects suffer repeated setbacks, with consultants returning every few months for additional “change order” payments when timelines slipped.