Parloa Secures $66 Million Investment to Drive Conversational AI Innovation

Parloa, a conversational AI platform, has secured a substantial $66 million in its Series B funding round, marking a significant leap from the $21 million it raised just a year ago from various European investors to bolster its global expansion efforts.

The German-based company has honed in on the American market, establishing an office in New York last year. This strategic move has enabled Parloa to onboard “multiple Fortune 200 companies” within the region. Altimeter Capital, a prominent U.S.-based VC firm known for its investments in industry giants like Uber, Airbnb, and others, leads this latest funding round.

While AI and automation have long been fixtures in customer service, the emergence of advanced technologies such as large language models (LLMs) and generative AI infrastructure has reignited investor interest in truly intelligent “conversational” AI solutions, moving beyond basic chatbots. Established players like Kore.ai have recently secured substantial investments of $150 million, signaling the industry’s momentum. Moreover, entrepreneurs like Bret Taylor have introduced innovative platforms like Sierra, a new customer experience platform emphasizing AI agents to enhance customer experiences which raised more than $100 million from venture investors.

Parloa finds itself in a prime position to capitalize on the growing enthusiasm for AI-driven solutions as businesses increasingly seek ways to enhance efficiency through automation. Since its inception in 2018, the startup has attracted notable clients such as Swiss Life and  Decathlon, utilizing its platform to automate various customer communications channels.

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However, Parloa distinguishes itself particularly in the realm of ‘voice’ interactions, according to Co-Founder and CEO Malte Kosub. He said “Our strategy has always been centered around ‘voice first,’ the most critical and impactful facet of the customer experience,” Kosub told TechCrunch over email. “As a result, Parloa’s AI-based voice conversations sound more human than any other solution.”

Co-founder and CTO Stefan Ostwald emphasizes that AI has been integral to Parloa’s DNA from the outset. “We’ve trained a variety of speech-to-text models on phone audio quality and customer service use cases. We’ve developed a custom telephony infrastructure to minimize latency, a key challenge in voice automation — as well as a proprietary LLM agent framework for customer service,” said Ostwald.

Having previously raised around $25 million, primarily through its Series A round last year, Parloa is now well-positioned with an additional $66 million in funding to further accelerate its growth in both European and U.S. markets. Kosub notes that the company has experienced remarkable revenue growth, tripling its revenue annually for the past three years.

“We successfully entered the U.S. market in 2023. We’ve always had confidence in the excellence and competitiveness of our product, but the overwhelming and rapid success it achieved in the U.S. surpassed everyone’s expectations,” said Kosub.

In addition to Altimeter Capital’s significant investment, Parloa’s Series B round includes contributions from EQT Ventures, Newion, Senovo, Mosaic Ventures, and La Familia Growth. With today’s funding, the company’s total capital raised reaches $98 million, building upon its $21 million Series A led by EQT Ventures in 2023.

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