Manychat secures $140 million to enhance its business messaging platform with AI

Manychat lands $140M for AI-driven messaging enhancements.

: Manychat has successfully secured $140 million in a Series B funding round led by Summit Partners. The company, founded by Mike Yan and Anton Gorin, plans to enhance its messaging platform with AI while expanding globally. Managing multiple channels, Manychat boasts over 1.5 million customers, including big names like Nike and Yahoo. Manychat’s focus on personalization and engagement aims to position it ahead of generative AI chatbots.

Manychat, a startup specializing in managing and automating business communications across multiple messaging platforms, recently announced securing $140 million in a Series B funding round led by Summit Partners. The company currently serves 1.5 million customers in 170 countries, and its clientele includes major corporations like Nike and the New York Times. Mike Yan, CEO and co-founder, highlighted Manychat's emphasis on research and development with plans to incorporate more AI capabilities into their platform, focusing on global sales, marketing, and support.

Founded in 2015 by Mike Yan and Anton Gorin, Manychat operates across popular platforms like TikTok, Instagram, WhatsApp, and Messenger, sending billions of messages annually. Known for its engagement layer that sets it apart from typical chatbots, the company plans further AI integration to enhance user interactions and customer outreach. Despite the boom in AI and chatbot technologies, Manychat distinguishes itself with an approach centered around encouraging user actions, which is believed to drive more consumer engagement and conversion rates.

Sophia Popova from Summit Partners, who is joining Manychat's board, noted the increasing reliance on messaging platforms for commerce and highlighted Manychat's strong position to capitalize on this trend. She praised their approach, which aligns with consumer expectations of constant engagement and availability, surpassing generic AI chatbot functionality by focusing on personalized communications that stimulate business conversion.

The funding is a significant leap from their previous $23 million raised, primarily from a Series A round in 2019. Noteworthy is Manychat’s profitability, operating near the borderline of break-even, which reflects sustainable growth despite the relatively modest financing history. Interestingly, Manychat's services began with a focus on Telegram when its API was first made available, illustrating how the company's growth corresponded with broader trends in social media messaging apps.

Manychat's expansion strategy aims at countering competition from more advanced AI chatbots by integrating new AI features that are expected to improve their service offerings. The startup’s trajectory not only aligns with the rise of messaging apps but also with the shifting dynamics of consumer and business communications in the digital age. Their efforts to enhance engagement functionality are seen as a critical move to capture a substantial share of the shifting messaging market.

Sources: TechCrunch, Manychat, Summit Partners

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