Respond.io raises $62.5M to expand and pursue acquisitions

In short: Respond.io, a Malaysian company that helps businesses manage customer messages, raised $62.5 million and says it is considering acquisitions in North America and Europe.

What happened

Respond.io, which is based in Kuala Lumpur, announced a $62.5 million Series B funding round. The round was led by Camber Partners, with participation from Endeavor Catalyst and existing investors. The company previously raised a $7 million Series A in 2022.

Respond.io sells software that helps mid-sized and large businesses handle customer conversations across many channels, including WhatsApp, Instagram, TikTok, Messenger, Telegram, WeChat, voice calls, and web chat. It also uses AI agents, which are automated helpers that can answer questions and take simple actions, like a customer service rep following a script.

The company told TechCrunch it has reached $35 million in annual recurring revenue, which is subscription revenue that repeats each year. It also said revenue grew 169% year over year, with a 30% profit margin. Respond.io says it processes about 2 billion messages per quarter.

With the new funding, CEO Gerardo Salandra said the company plans to hire more people, grow the business, and look at acquisitions. He said they are already in talks with potential targets, especially in Europe and North America, where Respond.io says growth is fastest.

Why it matters

Many companies now talk to customers in message threads instead of emails and phone calls. Tools like Respond.io aim to keep those conversations organized and fast, so customers are less likely to get ignored or stuck waiting, especially when message volume spikes.

Source: TechCrunch AI