US-based artificial intelligence startup FrondeskAI has raised ₹14 crores ($2 million) in seed funding from pi Ventures. This additional round has brought its total seed funding to ₹29.4 crores ($4.2 million). The startup will use the freshly raised capital to accelerate product development, research new vertical markets and increase customer acquisition.
Abhishek Surendran, a partner at pi Ventures will join the FrontdeskAI’s board. The board already has Sandeep Sardana, managing partner of BluePointe Ventures and Vishesh Rajaram, managing partner of Speciale Invest as directors. Earlier in June 2018, the startup raised ₹7.7 crores ($1.1 million) from BluePointe Capital and in November 2018, it raised another ₹7.7 crore ($1.1 million) from Speciale Invest.
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.”
Founded by Srivatsan Laxman and Supriya Rao in 2016, FrondeskAI develops AI-powered assistants for small business. The company’s current product caters to the wellness market including spa, salon and fitness industries. With a customer acquisition growth of 17 per cent every month, the startup has managed to keep its churn rate below the industry rates at less than 3 per cent per month.
Srivatsan Laxman, the 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, a 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.”
The assistant can help clients manage appointments, schedule and reschedule, capture enquiries and leads and can execute highly targeted and intelligent marketing campaigns. Using a set of proprietary algorithms and a database of natural language interactions, the assistant can build a rich source of information about customer requirements and preferences over time.