Why we continue to support Parloa

Published on May 13, 2024

Hi there,

As you might have heard, in the past weeks, our portfolio company, Parloa, announced a significant milestone. The company raised $66 million in Series B funding, marking the largest Series B funding round in the European contact center AI ecosystem. In May 2022, we decided to invest in Parloa and lead their seed round, and we continue to support the company on its exciting journey. Let us explain why.

Before Parloa entered the market, companies struggled with rising customer service (CS) volumes by expanding their agent workforce and implementing generic chatbots, which proved insufficient in addressing the unique requirements of CS needs. Companies sought to increase automation in customer service to cut costs and enhance customer experience. Initial attempts included email/FAQ automation, classical IVR touchstones, and voice-based IVRs that relied on rule-based and keyword recognition systems.

While these solutions showed improvements, they fell short due to their limited ability to handle various use cases and their fixed nature. The lack of customizability and heavy reliance on IT personnel by traditional players resulted in problematic consequences, causing businesses to lag behind in meeting customer expectations for personalized service. This reliance on scarce IT resources led to declining CX, potential customer churn, and negative effects on revenue.

In May 2022, we led the Seed-round of Parloa together with Senovo, because we saw in their voice automation capabilities the solution to those market’s pain points. Parloa’s use of AI technology allowed companies to elevate their customer experience, resulting in increased end-user satisfaction. Parloa differentiated itself from other vendors in terms of product depth and provided immediate sustainable value for its customers. With Parloa, those were now able to streamline their customer service operations and increase the end-customer experience.

We are confident in the future of Parloa and have backed the company in this funding round for several compelling reasons: Firstly, Parloa is at the forefront of one of the most dynamic and in-demand sectors through the effective use of AI. Furthermore, and proven in expanding customer contracts, Parloa has demonstrated its ability to create real value for its customers, differentiating itself from pure hype companies. The company’s ability to attract high-caliber talent indicates a strong foundation for further growth and development.

With a team of skilled leaders who have proven themselves both within Parloa and in previous roles, the company is well-positioned to handle the complexities of scaling and maturing. We’re excited to continue supporting Parloa on its road to market leadership.