Parloa, a conversational AI platform for customer service, raises $66M
Parloa, a conversational AI platform, has recently raised $66 million in a Series B funding round, following a $21 million investment last year from various European investors aimed at expanding its global presence. With a focus on the U.S. market, the German company established an office in New York, facilitating partnerships with “several Fortune 200 companies” in the region. Altimeter Capital, a renowned U.S.-based VC firm known for its investments in companies like Uber, Airbnb, and Twilio, led the latest funding round.
While AI and automation have been prevalent in customer service, the emergence of advanced language models and generative AI infrastructure has renewed interest in truly intelligent conversational AI. Established players continue to attract significant investments, with Kore.ai recently securing $150 million in funding. Entrepreneur Bret Taylor also entered the arena with Sierra, a customer experience platform centered around “AI agents,” raising over $100 million from venture investors.
Parloa is positioned to leverage the growing enthusiasm for AI-driven solutions in improving efficiency through automation. Since its inception in 2018, the startup has garnered notable clients such as European insurance giant Swiss Life and sporting goods retailer Decathlon, utilizing its platform to automate customer communications across various channels, including emails and instant messaging.
However, Parloa distinguishes itself in the realm of voice interactions, according to co-founder and CEO Malte Kosub. Emphasizing a “voice-first” strategy, Kosub believes that Parloa’s AI-powered voice conversations offer a more human-like experience compared to other solutions.
Parloa platform. Image Credits: Parloa
Co-founder and CTO Stefan Ostwald highlights that AI has been an integral part of Parloa’s foundation since its inception six years ago. The company employs a blend of proprietary and open-source large language models (LLMs) to train models specifically for speech-to-text applications.
“We’ve developed a range of speech-to-text models tailored for phone audio quality and customer service scenarios. Additionally, we’ve built a custom telephony infrastructure to address latency challenges, a critical aspect of voice automation. Our proprietary LLM agent framework further enhances our capabilities in customer service,” Ostwald explained.
Having previously raised approximately $25 million, primarily through its Series A round last year,Parloa is now well-capitalized with an additional $66 million in funding. This financial backing positions the company to intensify its growth efforts in both European and U.S. markets. Kosub highlights that Parloa has achieved significant revenue growth, tripling its revenue each year over the past three years.
“In 2023, we successfully penetrated the U.S. market. While we always had confidence in the excellence and competitiveness of our product, the rapid success it garnered in the U.S. exceeded everyone’s expectations,” Kosub remarked.
In addition to lead investor Altimeter, Parloa’s Series B funding round attracted investments from EQT Ventures, Newion, Senovo, Mosaic Ventures, and La Familia Growth. With today’s funding, the company’s total raised capital reaches $98 million, following its $21 million Series A led by EQT Ventures in 2023.