In today's world overflowing with AI and chatbots, truly useful tools for businesses and consumers are rare. Recently, Manychat, a startup that has achieved success in this field, announced it has secured $140 million in Series B funding, led by Summit Partners.
Founded in 2015, Manychat provides businesses with tools for managing and automating conversations across multiple messaging channels. The company currently boasts approximately 1.5 million customers in 170 countries, including well-known brands like Nike, The New York Times, and Yahoo, as well as numerous independent creators and small businesses. Manychat's CEO and co-founder, Mike Yan, stated that its users send "billions" of messages annually through the platform, encompassing chat platforms such as TikTok, Instagram, WhatsApp, and Messenger. This funding will primarily be used to increase R&D investment, particularly in integrating more AI capabilities into the platform, and to strengthen global sales, marketing, and customer support.
Unlike many startups, Manychat is largely profitable. Yan described the company as operating "on the edge of profitability." Since its inception, Manychat only received $18 million in Series A funding in 2019. The success of this Series B round signifies the company's strong growth trajectory.
Manychat's growth is inextricably linked to the rise of smartphone messaging apps. Yan and his co-founder, Gorin, recognized the urgent need for a transformation in how businesses communicate with users when Telegram opened its API. Compared to email, which is increasingly overwhelmed by spam, Yan believed businesses should connect with users through messaging apps – this was the genesis of Manychat.
With the opening of the Facebook Messenger API, Manychat experienced rapid growth. By 2019, they were reaching 350 million users monthly on the Messenger platform, with an impressive 80% message open rate. Furthermore, as APIs for platforms like TikTok opened, Manychat's user base expanded further.
Many consumers may be fatigued by chatbots, but Manychat differentiates itself by positioning its product as a tool to "drive further action," helping businesses better engage with customers on social media. Summit's investment partner, Sophia Popova, believes Manychat's "engagement layer" design meets the customer expectation for around-the-clock interaction, making it particularly crucial in the context of the growing social commerce landscape.
Key Highlights:
🌟 Manychat secures $140 million in Series B funding, planning to further enhance AI capabilities.
📈 The company currently has 1.5 million customers, including well-known brands like Nike and The New York Times.
🤖 Manychat is dedicated to helping businesses interact more effectively with customers through messaging apps.
