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Zesty, a company that offers a tool for automatically scaling and shrinking cloud resources to keep cloud costs in check, announced a $35 million series A funding round.

The company is tackling the contentious problem of keeping cloud-based applications running without paying too much. Competitors such as Kubecost and Cloudability already offer software packages that focus on tracking spending for managers. Zesty’s tool also tracks usage and, in real time, adjusts the allocation of instances and disk space to be large enough to handle the current load but small enough to keep the budget from exploding.

While Amazon AWS and other cloud providers are offering ways for companies to control costs, Zesty says it uses AI to automate repetitive cloud management tasks, an approach that is getting more attention as developers look for smart solutions and CFOs look to control budgets.

Easing the human load

“We started Zesty to serve our own purposes,” said Maxim Melamedov, CEO and cofounder of Zesty. “My cofounder was responsible for cloud infrastructure. He was the guy waking up [in] the middle of the night where when he would receive alerts from monitoring tools that, you know, ‘shit is about to hit the fan’.”


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They built the tool to let system administrators sleep at night. Zesty handles adjustments automatically, and can estimate the time it takes to spin up and shut down resources and planning accordingly. The tool works with AWS, managing a mix of reserved instances and tapping the marketplace to purchase or liquidate instances as needed. Zesty estimates that this flexibility to buy and sell automatically may cut cloud bills in half.

The tool can also minimize the amount of disk space devoted to the individual machines. Often, the cost of local disk space can be a substantial portion of the cost of an AWS instance. Zesty’s tool maintains a collection of pre-allocated disks and assigns them to machines when the process requires more room.

“In essence, what we are doing today is removing the stress of pager duty and, in some cases, removing the need to wake up in the middle of the night,” Melamedov said. “We also removed some of the work for the CFO.”

Zesty was founded in 2019 and is currently headquartered in Tel Aviv. The new funding round was led by Next47. Early investor S-Capital is returning, joined by Sapphire Ventures and Samsung Next. The new funding brings the total investment to $42 million.

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