Malaysia's Respond.io raises $62.5M Series B funding, eyes acquisitions in North America and Europe

AI Messaging Platform Secures Major Series B Funding

Respond.io, the Kuala Lumpur-headquartered customer conversation management platform, has closed a $62.5 million Series B round led by Camber Partners, with participation from Endeavor Catalyst and existing investors 1

1

. The AI agent-powered messaging app last raised $7 million in Series A funding in 2022, making this a significant leap in capital as the company positions itself for aggressive international expansion 1

1

.

The startup has achieved $35 million in annual recurring revenue, growing 169% year-over-year while maintaining a healthy 30% profit margin 2

2

. Co-founder and CEO Gerardo Salandra, who previously worked at IBM and Google before joining Runtastic, founded Respond.io in Hong Kong in 2017 alongside Hassan Ahmed and Iaroslav Kudritskiy 1

1

. The team relocated the business to Malaysia two years later, transforming it into one of the country's notable tech success stories.

Targeting High-Consideration Businesses Across Messaging Channels

The AI messaging platform helps mid- to large-sized B2C businesses drive revenue from customer conversations across multiple messaging channels including WhatsApp, Instagram, TikTok, Messenger, Line, Telegram, WeChat, voice calls and web chat 1

1

. The platform serves more than 10,000 businesses across over 180 countries, focusing on sectors like healthcare, automotive, retail, education and travel 2

2

.

Salandra describes the company's core customers as "high-consideration" businesses where customers need to talk to someone before buying. "You don't go to a website, put your credit card, and buy a car; you chat with someone, you ask a lot of questions," he explained 1

1

. The sweet spot for Respond.io is companies with 200 to 10,000 employees, where AI agents automatically handle high volumes of customer inquiries, qualify leads and close sales without human intervention.

Data Flywheel Advantage in the AI Era

With the platform currently processing 2 billion messages per quarter, Salandra believes the company has built a defensible moat against potential AI disruption 1

1

. "If I just look at the numbers, every day that AI becomes more prominent, we grow faster," he told TechCrurch 1

1

.

The CEO credits part of this resilience to the company's pricing model. Unlike enterprise software competitors that charge per seat, Respond.io charges based on the volume of customer conversations, meaning it doesn't matter whether a human or an AI is answering 1

1

. This creates what Salandra calls a "data flywheel" where more messages mean better AI, which attracts more customers, generating even more messages and data to refine the platform further.

Strategic Push to Expand Globally Through Acquisitions

With the fresh capital injection, Salandra confirmed the company plans to pursue hiring, organic growth and eyes acquisitions in strategic markets 1

1

. The CEO has two types of buying targets in mind: bolt-on technology that fits into its existing ecosystem, and established teams with strong customer bases in North America and Western Europe. "Imagine how many months I can save if I find the right company that maybe already has the clients and the team," he said, confirming the company is already in talks with potential targets 1

1

.

The geographic expansion makes strategic sense given current revenue distribution. Respond.io currently generates roughly 30% of its revenue from APAC, 30% from Latin America, and 20% from the Middle East and Africa, leaving North America and Western Europe at just 20% 1

1

. However, Salandra says those regions are now the fastest-growing as businesses increasingly adopt messaging channels, and he expects both to become the company's largest segment within two to three years.

Despite the substantial funding, Salandra maintains a disciplined approach. "We don't want to be a growth at all costs company," he said, adding that even with this money, the company will remain cautious 1

1

. But the CEO has his sights set on a larger milestone: "My favorite outcome? Ringing the bell at Nasdaq," hinting at potential Nasdaq IPO ambitions down the line 1

1

.