Railway, a San Francisco-based cloud platform, has raised $100 million in a Series B funding round led by TQ Ventures. The company has amassed two million developers without spending any money on marketing and claims its platform delivers deployments in under one second. Railway's pitch is based on the observation that traditional cloud infrastructure tools were designed for a slower era and are now a bottleneck due to AI coding assistants generating working code in seconds.
The company has processed over 10 million deployments monthly and handles over one trillion requests through its edge network, rivaling larger competitors. Railway's platform undercuts hyperscalers by roughly 50% and newer cloud startups by three to four times. The company charges by the second for actual compute usage: $0.00000386 per gigabyte-second of memory, $0.00000772 per vCPU-second, and $0.00000006 per gigabyte-second of storage.
Railway has achieved its scale with a team of just 30 employees generating tens of millions in annual revenue. The company grew revenue 3.5 times last year and continues to expand at 15% month-over-month. Railway plans to use the new capital to expand its global data center footprint, grow its team beyond 30 employees, and build what Cooper described as a proper go-to-market operation for the first time in the company's five-year history.
The company's investor roster reads like a who's who of developer infrastructure, including Tom Preston-Werner, co-founder of GitHub; Guillermo Rauch, chief executive of Vercel; Spencer Kimball, chief executive of Cockroach Labs; Olivier Pomel, chief executive of Datadog; and Jori Lallo, co-founder of Linear. The timing of Railway's expansion coincides with what many in Silicon Valley view as a fundamental shift in how software gets made, with coding assistants becoming essential tools that millions of developers rely on daily.
