Chatbots and AI agents are everywhere today, but their effectiveness varies significantly for businesses and consumers alike.
Manychat, a startup focused on managing and automating conversations across multiple messaging platforms, has raised $140 million in a Series B funding round led by Summit Partners to fuel its growth.
This funding comes after strong expansion for the company, which now boasts approximately 1.5 million customers in 170 countries, including notable clients like Nike, The New York Times, and Yahoo, along with individual creators and smaller businesses.
CEO and co-founder Mike Yan stated that Manychat sends “billions” of messages annually across platforms such as TikTok, Instagram, WhatsApp, and Messenger. The new investment will be used to enhance research and development, particularly in integrating more AI capabilities, as well as to strengthen global sales, marketing, and support.
Unlike many startups, Manychat is largely profitable, operating near breakeven. Since its inception in 2015, the company had raised only about $23 million prior to this round, mostly from an $18 million Series A in 2019.
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While Manychat did not disclose other investors in the Series B round or its current valuation, it’s expected to be significantly higher than the $58 million post-money valuation noted by PitchBook for the Series A.
Manychat’s journey reflects the rise of smartphone messaging apps and the growing need for tools that help businesses connect with users effectively. When Yan founded the company, email was becoming increasingly cluttered, prompting a shift toward messaging platforms for communication.
The initial version of Manychat was developed specifically for Telegram, leveraging its open APIs. Growth accelerated when Facebook opened its Messenger APIs, leading to 350 million monthly users by the time of Manychat’s Series A funding.
The company has continued to thrive with the opening of additional APIs across Meta platforms and TikTok. Currently, Instagram is the most engaged platform for Manychat.
Although Manychat’s foundation predates the rise of generative AI, it has positioned itself uniquely by combining automation with personal outreach. This approach distinguishes it from many existing chatbots, which often lack the capability to drive meaningful customer interactions.
Sophia Popova, the Summit partner who led the investment and will join Manychat’s board, believes the company’s focus on engagement makes it a strong candidate for future growth in social messaging. She emphasizes the importance of constant engagement in modern commerce, noting that Manychat excels in personalizing conversations to enhance revenue conversion.
As the landscape of AI chatbots evolves rapidly, Manychat aims to integrate more AI features to maintain its competitive edge.
SOURCE: TECH CRUNCH
