Business app AI tool supplier Progress Software is buying Nuclia, a Spanish startup with RAG-as-a-Service software.
Nuclia was founded in Barcelona, Spain, in 2019 by CEO Eudald Camprubí and CTO Ramon Navarro. They raised €5.4 million in seed funding in 2022 from Crane Venture Partners in the UK and Elaia in France. No additional funding rounds have been disclosed. The company’s software vectorizes unstructured data documents and stores the vectors in a Nuclia-operated cloud or an on-prem open source NucliaDB database. Source files can be Word documents, PowerPoint slides, images that can be scanned with OCI, and audio files that can be transcribed. Multiple languages are supported.
Progress says customer organizations can use Nuclia’s RAG service to vectorize their unstructured data, and enable them to automatically use their proprietary information to retrieve verifiable, accurate answers using GenAI.
Yogesh Gupta, Progress Software CEO, stated: “Nuclia’s easy-to-use, self-service SaaS product democratizes the use of trustworthy and verifiable GenAI. Small to mid-sized businesses, as well as large global corporations, can quickly and easily reap the benefits of sophisticated agentic RAG capabilities using Nuclia SaaS without the need for significant upfront investment.”
Camprubí added: “The rapid evolution of AI has transformed how organizations interact with information, creating new possibilities for more accurate, dynamic, and context-aware systems. Agentic RAG is a cutting-edge approach that combines the power of large language models (LLMs) with businesses’ own proprietary data to provide accurate and trustworthy answers. Our team at Nuclia is proud of what we have built, and we are excited to join Progress to continue to advance this important technology.”
Progress says Nuclia will extend the end-to-end value of its Progress Data Platform while creating opportunities to reach a broader market of organizations looking to take advantage of agentic RAG technology. This likely refers to small and medium-sized businesses. The acquisition of Nuclia is expected to enhance multiple Progress product lines with advanced AI capabilities.
The company reported a 36 percent increase year-over-year in total revenue for its second fiscal 2025 quarter to $237 million. Gupta said on an earnings call: “With Nuclia, we have accelerated the R&D process by purchasing great technology that addresses an urgent market need, and we will rapidly integrate it with our products. This will allow us to incorporate additional agentic RAG AI features that help our existing customers speed up their own GenAI initiatives, thereby enabling us to continue to drive strong customer retention. You’ll hear more about Nuclia in the coming quarters as we integrate this cutting-edge technology with our products.”
“This acquisition was primarily driven as an investment in our product portfolio. AI is sort of third major wave in the enterprise software that we see dramatically changing the landscape. This is a rather modest purchase price for a leading-edge technology around agentic RAG solutions for genAI. So we feel really, really good about it. Both for adding the technology as well as bringing on a strong team that can help us continue to move this technology forward, integrate it with our products and go to market.”
The acquisition was signed and closed on June 30 and is not expected to have a material impact on Progress’s financials. The price was not disclosed but a figure of $50 million has been floated.
