Conduct raises $60M to speed up software modernization projects

What happened

Conduct AI Ltd raised $60 million in a Series A funding round to advance its code modernization platform. The round was co-led by Index Ventures and ICONIQ, with participation from SAP SE and returning investors Creandum, Lucid Capital, and Booom. Conduct’s software targets outdated or incomplete off-the-shelf code in enterprise systems, speeding up software modernization projects.

Why it matters

Modernizing legacy software is a major bottleneck for many companies, especially those relying on aging or incomplete commercial code. Conduct’s platform aims to automate the labor-intensive process of updating and refactoring code, which reduces project timelines and lowers costs. This funding underscores growing investor interest in software modernization as businesses scramble to keep pace with digital transformation. The involvement of SAP SE signals demand from large enterprises that face high complexity in their IT environments.

The new capital will likely accelerate Conduct’s product development and market expansion. That intensifies competition in the code modernization space, pressuring incumbents to improve automation and reduce risk. It also raises the bar for toolchains that bridge old enterprise systems with modern platforms, which is critical for businesses managing digital debt without disrupting operations.

What to watch next

How Conduct deploys this $60 million will be key. Watch for product updates that embed AI or machine learning to handle more complex modernization tasks with less human oversight. Also track whether Conduct can scale to meet demand from SAP’s large customer base and other enterprise users. The ability to demonstrate real ROI on modernization projects will determine whether this funding translates into long-term commercial traction.

Expect rivals to respond with more automation features or partnerships, further speeding the shift from manual to AI-assisted software modernization. The move may also squeeze traditional consulting firms that rely on pricey manual code rewriting for legacy upgrades.

AI Quick Briefs Editorial Desk