Respond.io has raised $62.5 million in Series B funding as the Malaysia-based company expands its AI-powered customer conversation platform into North America and Europe. Camber Partners led the round, with participation from Endeavor Catalyst and existing investors.
The Kuala Lumpur-headquartered company has reached $35 million in annual recurring revenue, representing 169% year-over-year growth, while maintaining a 30% profit margin. Respond.io previously raised $7 million in a Series A round in 2022.
Platform Processes Two Billion Messages Per Quarter
Respond.io helps mid-sized and large consumer businesses manage customer conversations across WhatsApp, Instagram, TikTok, Messenger, Line, Telegram, WeChat, voice calls, and web chat. Its AI agents can respond to inquiries, qualify potential customers, and complete sales without human involvement.
The company processes about two billion messages each quarter. Its main customers operate in sectors where buyers often speak with a representative before making a purchase, including healthcare, automotive, retail, education, and travel.
Respond.io generally serves businesses with 200 to 10,000 employees. CEO Gerardo Salandra said the company benefits from charging customers according to conversation volume rather than the number of employees using the software.
The model allows Respond.io to earn revenue whether a customer inquiry is handled by a person or an AI agent. Salandra said this differs from enterprise software providers that rely on per-user fees and may earn less when companies reduce the number of human operators.
Funding Will Support Hiring and Acquisitions
Respond.io plans to use the new capital for recruitment, organic growth, and acquisitions, according to its official funding announcement. The company is considering technology businesses that could add features to its platform and established teams with customers in strategic markets.
Salandra said Respond.io is already speaking with several potential acquisition targets. Buying companies with existing teams and customers could shorten its expansion process by six months to a year.
About 30% of Respond.io’s revenue comes from Asia-Pacific, another 30% from Latin America, and 20% from the Middle East and Africa. North America and Western Europe currently contribute the remaining 20% but have become its fastest-growing regions.
Salandra expects North America and Western Europe to become the company’s largest revenue segment within two to three years. He said businesses in those markets took longer to adopt messaging channels but are now changing their customer communication practices quickly.
Company Plans to Maintain Profitable Growth
Salandra founded Respond.io in Hong Kong in 2017 with CTO Hassan Ahmed and COO Iaroslav Kudritskiy. The company moved to Malaysia two years later.
Respond.io plans to remain disciplined despite the new funding and does not intend to pursue growth at any cost. Salandra said his preferred long-term outcome would be to list the company on Nasdaq.
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