Respond.io raises $62.5M to expand AI-powered messaging platform

Respond.io, a Kuala Lumpur-based startup founded in 2017, has raised a $62.5 million Series B round led by Camber Partners, with Endeavor Catalyst and existing investors participating. The company, which last raised a $7 million Series A in 2022, has grown to $35 million in annual recurring revenue (ARR) with 169% year-over-year growth and a 30% profit margin. The platform helps mid- to large-sized B2C businesses manage customer conversations across WhatsApp, Instagram, TikTok, Messenger, Line, Telegram, WeChat, voice calls, and web chat. It uses AI agents to automatically handle high volumes of inquiries, qualify leads, and close sales without human intervention. CEO Gerardo Salandra emphasizes their per-conversation pricing model, which contrasts with traditional per-seat models, allowing them to benefit from AI adoption rather than lose revenue. Currently processing 2 billion messages per quarter, the company believes its data flywheel gives it a competitive edge: more messages lead to better AI, which attracts more customers.

With the new capital, Respond.io plans to hire, grow organically, and pursue acquisitions. Salandra targets bolt-on technology that fits into their ecosystem and established teams with strong customer bases in strategic markets like Europe and North America. The company currently generates 30% of revenue from APAC, 30% from Latin America, 20% from the Middle East and Africa, and only 20% from North America and Western Europe. However, Salandra notes those regions are now the fastest-growing, and he expects them to become the largest segment within two to three years. Despite the funding, he is cautious about not pursuing growth at all costs, aiming for sustainable expansion. Respond.io's rise illustrates how AI-powered messaging platforms are reshaping customer engagement, especially in emerging markets where mobile messaging dominates.