Wallarm, a leader in API and AI security, announced a $55 million Series C funding round led by Toba Capital on July 31, 2025. The investment will drive innovation and scale operations for Wallarm’s API Security Platform, addressing the evolving threat landscape fueled by AI-powered attacks in enterprises across financial services, manufacturing, and technology sectors.
Wallarm secures $55M Series C led by Toba Capital to enhance API security.
Protects against AI-driven threats like prompt injection and API logic abuse.
Achieved 134% net revenue retention in 2024 with near-zero churn.
Introduced Agentic AI Protection and Penetration Testing Service for AI systems.
Released first API Honeypot Report, highlighting rising API vulnerabilities.
Supports real-time API attack blocking, unlike traditional security tools.
The rapid adoption of AI has transformed the API security landscape, with attackers leveraging AI to exploit vulnerabilities at unprecedented speeds. “AI not only allows attackers to develop and execute exploits at an incredible pace, it also dramatically expands the target surface,” Wallarm noted. Unlike traditional tools, Wallarm’s platform is built for real-time API attack blocking, addressing threats like prompt injection and jailbreaks, critical for securing modern AI-enabled organizations.
Wallarm’s API Security Platform, enhanced by its Agentic AI Protection, monitors and blocks AI-specific attacks, ensuring robust protection. “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. The company’s 2024 growth, with 134% net revenue retention and near-zero churn, underscores its ability to deliver innovative solutions rapidly, as evidenced by its first-of-its-kind Penetration Testing Service for AI systems.
The $55 million funding supports Wallarm’s expansion, backed by key hires including Morgan Jay (President and CRO), Michelle Gerson (VP of Marketing), and Greg Deisher (CFO). “Wallarm is shaping the future of API and AI security,” said Vinny Smith, Founding Partner at Toba Capital. The company’s API Honeypot Report revealed a 1,205% surge in AI-related API vulnerabilities, emphasizing the need for its real-time protection in a $47 billion API security market by 2028.
Wallarm’s platform integrates natively with modern stacks, offering precision tooling to prevent threats before they escalate. Its recent innovations, including Security Edge for edge-based protection and free-tier access for up to 500,000 API requests monthly, position Wallarm to compete with Akamai, AWS, and Google Cloud. The company plans to balance its 60/40 U.S.-international revenue split, targeting global markets with high API and AI adoption.
Wallarm’s Series C funding empowers it to lead the API security market, delivering real-time, AI-driven protection to enterprises. With a focus on innovation and scalability, Wallarm is poised to redefine cybersecurity in the AI era, ensuring organizations stay ahead of sophisticated threats.
Wallarm is the only unified platform for API and agentic AI security successfully deployed in enterprise production environments. With Wallarm, customers receive the fastest, easiest, and most effective way to stop API attacks. Organizations choose Wallarm to protect their APIs and AI agents because the platform delivers a complete inventory of APIs, real-time blocking, and patented AI/ML-based abuse detection. Wallarm is headquartered in San Francisco, California, and is backed by Toba Capital, Y Сombinator, Partech, and other investors.
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