Connectly, an innovative conversational commerce startup, has successfully raised $20 million in its Series B funding round. This significant financial boost will help the company to enhance its AI-driven platform, aimed at enabling businesses to better engage with their customers through personalized, two-way conversations. Founded by experts from tech giants like Facebook, Google (NASDAQ:GOOGL), and Uber (NYSE:UBER), the company aims to revolutionize customer interaction in eCommerce.
Series B funding, led by Alibaba, also saw participation from Unusual Ventures, Volpe Capital, RX Ventures, Falabella Ventures, and Philippos Kourkoulos Latsis. This capital infusion follows a Series A round closed in October 2023. Such ongoing investor confidence demonstrates the potential they see in Connectly’s AI-powered solutions for retailers.
In addition to recent funding achievements, Connectly launched its AI product recommendation assistant, Sofia AI, and nearly doubled its revenue and workforce in the past year. This continued growth aligns with the increasing importance of AI in retail, as businesses seek more effective ways to communicate with customers and drive sales.
Improving Customer Engagement
Connectly’s platform aims to address the limitations of traditional one-way communication channels like SMS and email. By enabling interactive campaigns without the need for coding, businesses can automate two-way conversations with both prospective and existing customers. This approach is designed to increase engagement and improve conversion rates.
“Most interactions between brands and consumers are through old-fashioned one-way communication channels, like SMS and email that produce shallow engagement and read rates,” the company said in a news release. “Businesses need a personalized two-way conversation to efficiently communicate with their customers to boost sales and engagement.”
AI in Different Contexts
Joscha Koepke, Connectly’s chief product officer, emphasized the role of contextual use in AI chatbots. While humor may not be appropriate for AI handling stressful situations like flight cancellations, it can enhance user experience in other sectors such as fashion retail. The company also takes cultural and linguistic differences into account by using localized datasets and cultural sensitivity training.
“For example, an AI customer support agent handling flight cancellations does not benefit from being funny, and people will likely react negatively to humor in stressful situations,” Koepke said.
Recent efforts by major tech companies to develop multilingual AI chatbots highlight their potential to transform global eCommerce. Multilingual capabilities can help small and medium-sized businesses overcome language barriers, making it easier to connect with international customers and expand into new markets.
“Multilingual AI chatbots hold significant potential for SMBs looking to expand into international markets,” Tim Peters, CMO of Enghouse Systems, told PYMNTS. “By providing real-time, accurate translations, these chatbots can help businesses overcome language barriers, making it easier to connect with customers globally.”
Connectly’s recent accomplishments and funding milestones underscore the growing role of AI in transforming customer interactions in eCommerce. By addressing the limitations of traditional communication methods and leveraging AI to provide personalized, automated conversations, Connectly is well-positioned to help businesses enhance customer engagement and drive growth. The strategic backing from prominent investors further supports the company’s vision of revolutionizing the retail industry with innovative AI solutions.
