Malaysia-based Respond.io has raised $62.5 million in a Series B funding round to expand its AI-powered customer messaging platform. Camber Partners led the round, while Endeavor Catalyst and existing investors also participated.
The Kuala Lumpur company plans to use the capital for recruitment, product development and acquisitions. It will focus on North America and Western Europe, where businesses are increasing their use of WhatsApp, Instagram, TikTok and other messaging services.
Respond.io generates $35 million in annual recurring revenue. The company said its revenue grew 169% from the previous year, while it recorded a 30% profit margin. It previously raised $7 million through a Series A round in 2022.
The platform serves more than 10,000 businesses across over 180 countries. Its customers include companies in healthcare, education, automotive, travel and retail. These sectors often require direct conversations with customers before they buy products, make bookings or commit to services.
Respond.io processes about 2 billion messages every quarter. Its platform combines WhatsApp, Instagram, Messenger, TikTok, Telegram, LINE, WeChat, email, voice calls and web chat. It also connects businesses with customer relationship management systems and other workplace tools.
Chief Executive Officer Gerardo Salandra said rising AI adoption has supported the company’s growth. “Every day that AI becomes more prominent, we grow faster,” he said. Still, the company faces competition from larger software providers that are adding AI agents to existing customer service products.
Respond.io uses AI agents to answer questions, identify potential customers and support sales. The tools can manage routine conversations without human help. Human workers can then handle cases that require more detail or personal attention.
The company charges customers according to conversation volume instead of the number of employees using the platform. Salandra said this model allows businesses to increase automation without reducing Respond.io’s revenue. “It doesn’t matter whether a human or an AI is answering,” he said.
Traditional customer service platforms often built their systems around email and telephone support. Respond.io developed its service around messaging apps, which have become major business channels across Asia, Latin America, the Middle East and Africa.
However, questions remain about whether general AI tools could replace specialised messaging platforms. Salandra said Respond.io’s message volume gives it access to operational data that newer platforms may not have. The company uses that information to improve routing, automation and responses across customer conversations.
Respond.io plans to pursue two types of acquisitions. It may buy technology that can be added to its platform. It may also acquire companies with established teams and customer bases in North America or Europe.
Salandra confirmed that Respond.io has started discussions with possible acquisition targets. “I can save myself six months to a year through an acquisition,” he said. However, the company has not named the businesses involved or disclosed the possible value of any transaction.
Asia-Pacific generates about 30% of Respond.io’s revenue, while Latin America accounts for another 30%. The Middle East and Africa contribute around 20%. North America and Western Europe currently provide the remaining 20%.
The company said North America and Western Europe are now its fastest-growing regions. It expects them to become its largest market segment within two to three years. Respond.io will also hire more workers and expand its sales operations in these markets.
Despite the new funding, Salandra said the company will control its spending. “We don’t want to be a growth-at-all-costs company,” he said. He added that Respond.io will maintain financial discipline while pursuing its expansion and acquisition plans.