ChatGPT-Powered Conversational AI Startup Druid Raises $30M
Enterprise conversational AI startup Druid has raised $30 million in a Series B funding round led by TQ Ventures. The Romania-founded Druid offers businesses virtual customer service agents powered by both standard conversational AI and ChatGPT’s generative AI model.
There’s a huge demand for automating customer service, enhanced by the spread of generative AI models. Startups like Ada, Cohere, and Kore.ai are just a few seeing significant investment as a result. Druid’s claim for standing out among many conversational AI providers centers on the inclusion of ChatGPT following a partnership agreement with Microsoft earlier this year. Incorporating through Microsoft’s Azure OpenAI Service lets the virtual agents produced by Druid respond to more varied queries by customers, extrapolating intent from what they write and composing more useful responses. The goal is better customer engagement, reduced wait times, and more frequent resolution of issues.
Druid enables companies to build conversational business applications that provide natural dialogue between employees and customers. The no-code platform integrates with existing technologies to streamline the process and skip the need to replace prior technological investment. Druid plans to invest the new money into expanding its footprint in the U.S., which the company said already provides 60% of its revenue thanks to clients like Kmart, White Castle, the NHS, and Georgia Southern University. Druid claims it grew its revenue by 150% last year and anticipates triple growth in 2023.
“DRUID capitalizes on recent advancements in Generative AI, which seamlessly integrate into our Conversational Business Applications platform. We believe our platform will, for large international enterprises, ignite a new era of productivity and tangible business outcomes,” Druid CEO Liviu Drăgan said. “Bolstered by our latest investment round and against the backdrop of this technological revolution, we are well positioned and excited to work hard to offer technology solutions that empower our customers to unlock maximum value.”
Druid is part of the growing ecosystem of enterprise-focused generative AI companies, with plenty attracting big investments and acquisition prices. For instance, fellow French startup Mistral raised $113 million, while data storage firm Databricks paid $1.3 billion for generative AI model startup MosaicML. Meanwhile, Salesforce is rolling out generative AI tools to its clients and setting up a $500 million fund to invest in startups doing the same.