FrontdeskAI, the leading developer of artificial intelligence (AI) assistants for small businesses, and the fastest adopted AI assistant in the wellness market, today announced it has closed an additional $2 million in funding, bringing its total seed funding to $4.2 million.
This pre-series A round of funding was led by pi Ventures, India’s first Applied Artificial Intelligence, Machine Learning, IoT and Blockchain focused early stage venture fund.
The funds will help FrontdeskAI accelerate product development, increase customer acquisition and investigate new vertical markets.
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Previous seed rounds include $1.1 million in June 2018, led by Blue Pointe Capital and $1.1 million in November 2018, led by Speciale Invest.
pi Ventures’ partner, Abishek Surendran, will join the FrontdeskAI board that already includes BluePointe Ventures managing partner, Sandeep Sardana, and Speciale Invest managing partner, Vishesh Rajaram.
FrontdeskAI creates AI assistants specifically for small businesses that rely on appointment-based products and services for their revenue.
The company’s current AI assistant portfolio serves the wellness market including the spa, salon and fitness industries. The wellness market is globally valued at $4.2 trillion and is growing twice as fast as global economic growth.
FrontdeskAI customer acquisition is currently growing 17% month on month, subscription revenue is growing 25% month on month, and churn is amongst the lowest in the industry at less than 3% per month.
FrontdeskAI assistants help manage appointments, class scheduling, rescheduling, all forms of customer and service specific enquiries, and can execute highly targeted and intelligent marketing campaigns.
They are powered by a set of proprietary algorithms, a proprietary database of B2C natural language interactions, and knowledge graphs. Over time, they build a rich source of information about customer requirements, preferences and usage patterns.
By tapping into the FrontdeskAI knowledge graph, the AI assistants are expert and up and running immediately on deployment. To create human empathy, FrontdeskAI provides a second layer of intelligence comprising human trainers to groom the AI assistant to speak in the style and tone of the customer brand.
The AI assistant becomes independent over time building knowledge and experience from all its interactions.
Srivatsan Laxman, CEO, FrontdeskAI, said “We are laser focused on developing affordable and easy-to- use AI assistants for small businesses. The market traction we have already achieved is exciting. Our customers report a 30% increase in revenue, 20% increase in new client registrations, and a significant reduction in class drop-outs. With the additional funding and the partnership with pi Ventures we are now in a position to deepen our IP and competitive barriers to market entry.”
Abishek Surendran, Partner, pi Ventures, said, “We are excited about partnering with FrontdeskAI which has developed a world class AI assistant for the small and medium enterprise market.
Their deep learning-based AI engine means that companies can provide superior customer experiences at very low costs. We look forward to supporting Srivatsan and the FrontdeskAI leadership team to accelerate and expand upon the market advantage they have created.”