Observe.AI Raises $125mn In Series C Funding Led By Softbank Vision Fund 2

Observe.AI, a workforce platform that transforms contact centres through AI, today announced that it has raised $125 million in Series C funding led by SoftBank Vision Fund 2 with participation from Zoom.

The round also includes participation from Observe.AI’s existing investors such as Menlo Ventures, Scale Venture Partners, and Nexus Venture Partners, bringing the company’s total funding to date to $213 million.

Observe.AI’s platform transforms how contact centers operate as AI-empowered systems of intelligence, with full conversation visibility, business-improving insights, and machine-driven workflows.

This new funding highlights increased confidence in Observe.AI’s market position at a critical moment for the contact center industry, in which consumer expectations and technology investments are at an all-time high, yet brands struggle to improve customer experience and business outcomes. While $24 billion has been poured into technology investments, contact centers remain woefully in the dark when it comes to customer conversations. At most, typical contact centers have just 3% visibility into these interactions, leaving their customer-facing teams with no option but to work reactively and inconsistently – and leading to an estimated $75 billion per year in lost revenue.

This latest investment will fuel development of the next generation of Observe.AI’s product innovations – including expansion into harmonizing real-time with post-interaction agent coaching – scale the company’s go-to-market motion and drive continued geographical expansion into international markets, and accelerate its timeframe to IPO readiness.

“Observe.AI has a transformative vision to deliver actionable and trustworthy AI that empowers digital-first businesses to create exceptional customer experiences,” said Priya Saiprasad, Partner at SoftBank Investment Advisers. “We believe the company has built an intelligent, flexible platform with endless use cases, from healthcare companies seeking to enhance patient experience through to financial institutions aiming to boost revenue. We are thrilled to partner with Swapnil (Jain) and the team to help them accelerate a paradigm shift within the contact center industry.”

The last two years have been packed with milestones and continued record growth for Observe.AI. In September 2020, the company raised $54 million in a Series B Funding round led by Menlo Ventures, with participation from Next47 Ventures and NGP Capital. On the heels of announcing 300 per cent year-over-year revenue growth, Observe.AI made its entry into the omnichannel market with its acquisition of Scope.AI in August 2021.

In March 2022, Observe.AI announced continued record growth for its fiscal year, including nearly 150% increased ARR and increased customer base of $100K or more by 125% year-over-year. This propelled a substantial uptick in usage of the Observe.AI platform, including 3X increase in volume of customer interactions analyzed with its AI engine, 426% increase in AI-powered agent evaluations, and 201% increase in AI-powered agent coaching sessions.

Swapnil Jain, Co-Founder and CEO of Observe.AI, said: “This fresh round of funding is further validation that Observe.AI is uniquely positioned with our industry-leading product innovations and offerings, robust services expertise and partner ecosystem, and intimate understanding of and execution on the evolving needs at the intersection of AI and CX.”

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