Observe.ai raised $125M from Zoom and SoftBank Vision Fund

The video conferencing service Zoom and the artificial intelligence firm Observe.ai have raised $125 million in a new round of fundraising headed by Softbank Vision Fund 2. Existing investors Scale Venture Partners, Menlo Ventures, and Nexus Venture Partners also participated in the round, bringing the company’s total fundraising to date to $213 million. Bengaluru is home to an office for Observe.ai, which has its headquarters in San Francisco.

The money will be used to scale the firm’s go-to-market strategy, propel regional expansion into foreign markets, and shorten the time it takes to become IPO-ready, according to a prepared statement from the company.

According to Jain, cofounder of Observe.ai, “We are positioned with our product breakthroughs and offers, strong services expertise, partner ecosystem, and intimate understanding and execution of the developing needs at the confluence of AI and CX (customer experience).

Observe.ai raised $ 54 million in Series B financing led by Menlo Ventures in September 2020.

After obtaining the series B investment, the company was reporting a 300 percent increase in sales year over year and, in August 2021, through the acquisition of Scope.AI, entered the omnichannel market.

Observe.aI announced growth for its fiscal year in March 2022 at almost a 150 percent increase in annualized ARR (average revenue run-rate), and it boosted the customer base of customers spending at least $100,000 by a factor of 125 years over year.

The company said in a prepared statement that this caused a significant increase in the use of the Observe.AI platform, including a three-fold increase in the volume of customer interactions analyzed by its AI engine, a 426 percent increase in agent evaluations, and a 201 percent increase in AI-powered agent coaching sessions.