Infracost
YC W21San Diego, US · Founded 2020 · Delaware corporation · 25 employees · Hiring · 12 known investors
Infracost provides cloud cost management and FinOps tools that help engineering teams estimate cloud costs and optimize spending across AWS, Azure, and GCP. The platform serves enterprise customers and development teams seeking to reduce cloud infrastructure expenses.
Also known as Infracost Inc
Founders & leadership· Y Combinator alumni (W21)
Infracost was founded in 2020 by Ali Khajeh-Hosseini, Alistair Scott, Hassan Khajeh-Hosseini, Ali Khajeh Hosseini Salehabad, and Hassan Khajeh Hosseini Saleh Abad.
Board
Investors · 12
Also in the syndicate · 4
Reported raises · per SEC filings
Form D private placements$18.8M disclosed across 1 of 2 rounds · 2025
▶$18.8MraisedDec 2025 · 12 investors · Other TechnologyRule 506(b)
- Ali Khajeh Hosseini SalehabadDirector
- Alistair Ian ScottExecutive Officer
- Sudip ChakrabartiDirector
- Hassan Khajeh Hosseini Saleh AbadExecutive Officer, Director
- Offering amount
- $18.8M
- Amount sold
- $18.8M
- First sale
- Jun 2025
- Incorporated
- Corporation, Delaware, 2021
- Federal exemptions
- 06b
Source: SEC EDGAR Form D. Amounts as filed; amended filings shown once at their latest values.
The YC application· Winter 2021 batch
Alumni Q&A
- How did your company get started? (i.e., How did the founders meet? How did you come up with the idea? How did you decide to be a founder?)
- The founders previously built one of the early cloud cost management products in 2012, which was later acquired and became part of Flexera One. Observing that the space still relied on reacting to cloud bills, they started Infracost to apply the "shift left" approach, used in security, to cloud costs by moving FinOps into the engineering workflow.
- How did you decide to apply to Y Combinator? What was your experience applying, going through the batch, and fundraising at demo day?
- The founders first applied to YC in 2012, when AWS had around 10,000 prices; they were later accepted into the W21 batch. Infracost now tracks nearly 4 million prices across AWS, Azure, and GCP.
- How have you kept in touch with the YC community and continued to use YC resources & programs since the batch ended?
- The founders' YC group holds a monthly Zoom check-in to discuss issues, questions, and learnings among the companies.
- What is the core problem you are solving? Why is this a big problem? What made you decide to work on it?
- The founders note that existing cloud cost management products are reactive, while Infracost is aimed at engineers and runs FinOps checks before code is merged, directly in a GitHub PR or GitLab MR. These checks cover cloud tagging, FinOps best practices, and budget guardrails before spending occurs, plus a Jira integration for FinOps data.
Summarized from the founders' answers on their Y Combinator profile.
Company profile
researched Aug 2026Infracost is a cloud cost intelligence and FinOps platform that inserts cost estimation and policy checks into the software development workflow rather than into post-deployment cloud bills — an approach the company brands as "Shift FinOps Left." Its open-source CLI parses Terraform, Terragrunt, CloudFormation and AWS CDK projects locally to produce cost breakdowns and FinOps recommendations before changes are deployed, without sending cloud credentials or secrets to the API and without modifying IaC state or cloud resources. The same engine, pricing data and policy set are exposed through several entry points: the terminal, IDE extensions (VS Code, Cursor, Windsurf, JetBrains IDEs, Neovim and Zed, all built on an Infracost Language Server), AI coding agent skills for Claude Code, GitHub Copilot, OpenAI Codex, Cursor and Gemini CLI, and CI/CD integrations that post cost diffs and policy checks on pull requests in GitHub, GitLab and Azure DevOps.
Infracost Cloud is the commercial SaaS layer, positioned by the company as a "Cloud Cost Avoidance Platform." It lets FinOps teams and platform managers define tagging policies, guardrails, price books and custom FinOps policies once and enforce them (as hard or soft mandates) across the CLI, editor extensions, agent skills and CI pipelines, while providing reporting on spending trends and realized savings. Recent product capabilities include Issue Explorer, which scans connected IaC repositories to surface existing optimization and compliance issues; AutoFix, which uses AI to open pull requests containing the corrective IaC changes; and Campaigns, a workflow engine for coordinating remediation programs such as migrating workloads to Graviton instance types.
The platform supports AWS, Azure and Google Cloud, covering over 1,100 resource types including usage-based services such as S3 and Lambda. Third-party tools also consume Infracost pricing: Scalr, for example, integrates with the Infracost cloud pricing server to attach estimated costs to Terraform/OpenTofu plans and feed them into Open Policy Agent policy decisions.
Founding story
The founding team consists of brothers Hassan and Ali Khajeh-Hosseini together with Alistair Scott. They had previously built one of the earliest cloud cost management products, which was acquired by Flexera; that experience led them to conclude that effective cloud cost control must begin with engineers inside code reviews rather than after the bill arrives. Hassan Khajeh-Hosseini serves as co-founder and CEO.
Business model
Infracost combines an open-source, Apache-2.0-licensed CLI and ecosystem of editor/agent/CI integrations with a paid SaaS product, Infracost Cloud, that adds organization-wide policy configuration, guardrails, tagging policies, price books, issue remediation and reporting. Free sign-up and a free trial are offered alongside sales-assisted demos, indicating a self-serve plus enterprise motion. Third-party platforms such as Scalr can connect to the Infracost pricing server using an API key.
Revenue is associated with Infracost Cloud, the SaaS dashboard sold on top of the free/open-source CLI; the website lists pricing, free sign-up, free trials and scheduled demos, though specific pricing tiers are not stated in the sources.
Traction
As of the November 2025 Series A announcement, Infracost reported more than 3,500 customer companies including 10% of the Fortune 500, and pricing coverage of over 4 million prices across three clouds. The main GitHub repository has 12.5k stars, 684 forks, 71 watchers and 3,183 commits. The website claims $3.5B in cumulative customer savings and cites per-engineer savings of $4,179 per year and $83 per deployment, plus customer testimonials from Warner Hotels, SafeFleet and Happening.
Latest developments
On 18 November 2025 Infracost announced a $15 million Series A led by Pruven Capital with participation from Y Combinator, Sequoia Capital, Mango Capital, Alumni Ventures, TIAA Ventures and angel investors Paul Copplestone and Timothy Chen; Sudip Chakrabarti joined the board. The company highlighted three recent feature launches — Issue Explorer, AutoFix and Campaigns — signalled further product announcements, and said it is hiring across all roles. Documentation reflects CLI version 2.16.0 and an expanded AI coding agent and IDE integration surface following Infracost 2.0.
▸Full profile — market position, technology, go-to-market, geography, history, risks & controversies
Market position
Infracost positions itself against traditional FinOps and cloud cost management tools that analyze spend retrospectively from cloud bills, arguing that cost decisions are effectively made by engineers at provisioning time. The company describes itself as the only cloud cost avoidance platform and coined the "Shift FinOps Left" framing. Its investor characterizes the product as a "cloud checkout screen" for developers.
Rather than reporting on spend after it is incurred, Infracost evaluates cost and policy compliance at the pull-request and code-authoring stage, and can automatically generate remediation pull requests via AutoFix. A single engine, pricing dataset and policy definition are reused across the CLI, IDEs, AI coding agents and CI, so policies configured once are enforced at every entry point. The open-source CLI operates locally without access to cloud credentials or state.
Technology
A Go-based open-source CLI (Apache License 2.0) parses IaC locally to determine resource types and quantities, then queries Infracost's cloud pricing API, which the company says tracks over 4 million prices (the product page cites 10m+ price points) across AWS, Azure and GCP for more than 1,100 resource types, including usage-based estimation for services like S3 and Lambda. Editor integrations are built on a standard LSP-based Infracost Language Server, and agent skills (iac-generation, scan, price-lookup) expose pricing and policy context to AI coding agents. AutoFix applies AI to generate corrective pull requests. Recommendations are based in part on Well-Architected Framework guidance. Distribution includes multiple Docker images and GitHub releases.
Go-to-market
Bottom-up developer adoption via a free open-source CLI (12.5k GitHub stars, 684 forks), package-manager installs (Homebrew, Chocolatey, shell script), IDE extensions, AI coding-agent plugins and CI/CD integrations, supported by a community Slack channel and GitHub Discussions. This is paired with a top-down enterprise motion targeting FinOps and platform teams through Infracost Cloud, free trials, scheduled demos, ROI reporting and customer case studies.
Engineers writing infrastructure as code, platform engineering and platform manager teams, and FinOps practitioners inside organizations running AWS, Azure or Google Cloud. Named or referenced users include Warner Hotels, SafeFleet and Happening; the company says more than 3,500 companies, including 10% of the Fortune 500, use the product.
Geography
The Series A press release was issued from San Diego. Sources otherwise describe a distributed, product-led online presence (GitHub, Slack community, LinkedIn, YouTube) without naming additional offices; customers referenced include organizations such as Warner Hotels.
History
Press materials for the 2025 Series A state the company was founded in 2021 (internal records list 2020). The project grew around an open-source CLI for Terraform and other IaC cost estimation, later adding Infracost Cloud as a SaaS governance and reporting layer, CI/CD and IDE integrations, and AI coding-agent skills. The Infracost 2.0 release refactored the codebase into focused repositories (cli, agent-skills, vscode-infracost, jetbrains-infracost, infracost.nvim, zed-infracost). In November 2025 the company announced a $15 million Series A and the appointment of Sudip Chakrabarti to its board.
Risks & controversies
The sources do not report controversies. Notable data caveats: the founding year given in the Series A press release (2021) conflicts with the internally recorded 2020, and savings and price-coverage figures differ between the company website ("$3.5B saved", "10m+ price points") and the funding announcement ("over 4 million prices"), with all such figures self-reported and unaudited.
Compiled by commissioned research from 8 cited public sources — announcements, filings, and press listed under research sources below.
Key figures
latest reportedCompany-reported or press-reported figures, each dated to when it was claimed — not independently audited.
Competitors · 6
by search overlap
Companies competing with Infracost for the same Google search keywords, organic and paid, via search-intersection analysis.
Timeline · 4
launches, deals, and filingsInfracost announced a $15 million Series A led by Pruven Capital, with participation from Y Combinator, Sequoia Capital, Mango Capital, Alumni Ventures, TIAA Ventures, and angel investors Paul Copplestone (Supabase co-founder) and Timothy Chen (Essence VC).
$15M source ↗
Sudip Chakrabarti, Partner at Pruven Capital, joined the Infracost board in connection with the Series A round.
Infracost described three recently launched features: Issue Explorer (scans connected GitHub, GitLab or Azure DevOps IaC repositories to surface optimization opportunities), AutoFix (AI-powered automatic pull requests that correct Infrastructure-as-Code), and Campaigns (an automated workflow engine to align FinOps efforts with engineering work).
As part of the Infracost 2.0 release the codebase was refactored into focused repositories; the toolkit added agent skills (iac-generation, scan, price-lookup) for Claude Code, Cursor, GitHub Copilot, OpenAI Codex and Gemini CLI, plus IDE extensions for VS Code/Cursor/Windsurf, JetBrains, Neovim and Zed powered by an Infracost Language Server.
Dated company events from announcements, filings, and press; legal rows summarize public dockets and regulator releases.
Legal entities · 1
corporate structureIn the news
The next chapter in Shifting FinOps Left: Infracost has raised a $15 Million Series A - Infracostinfracost.io · Nov 2025▸Research sources · 8
primary sources listed
- Infracostinfracost.io · web
8 public sources were cited for this profile; the first-party ones are listed here.
Frequently asked questions
- What does Infracost do?
- Infracost shows engineers the cloud cost impact of infrastructure-as-code changes before deployment and automates FinOps policy enforcement.
- Who founded Infracost?
- Infracost was founded by Ali Khajeh-Hosseini, Alistair Scott, Hassan Khajeh-Hosseini, Ali Khajeh Hosseini Salehabad, Hassan Khajeh Hosseini Saleh Abad in 2020.
- Who are Infracost's investors?
- Infracost's investors include Brighter Capital, Mango Capital, PruVen Capital Partners, Sequoia Capital, Y Combinator, Alumni Ventures, Decibel Partners, SV Angel.
- How much funding has Infracost raised?
- Infracost has disclosed $18.8M raised across 1 of its 2 known rounds.
- Where is Infracost headquartered?
- Infracost is headquartered in San Diego, US.