Charles Raises €6.4M Seed for WhatsApp Conversational Commerce

Charles Secures €6.4 Million to Expand Conversational Commerce Platform

Charles, a Berlin-based startup specializing in conversational commerce SaaS, has successfully raised €6.4 million in a new funding round.

Funding Details and Platform Growth

The seed funding round was spearheaded by Accel and HV Capital. These funds will be strategically allocated to facilitate the company’s scaling efforts and address the growing demand for its innovative platform.

Founded in 2020 by Artjem Weissbeck and Andreas Tussing, Charles originated from a year-long experiment involving operating a store directly within WhatsApp.

Enabling Sales Through Chat Applications

Charles empowers businesses to facilitate the sale of products and services through platforms like WhatsApp and other popular chat applications.

The primary goal is to enhance conversion rates, foster stronger customer loyalty, and ultimately drive increased revenue.

Seamless Integration with Existing Systems

The SaaS platform establishes connections between chat app APIs – including WhatsApp and Messenger – and established shop and CRM systems such as Shopify, SAP, and HubSpot.

This integration is presented through an intuitive interface, simplifying the process for businesses to engage with customers on their preferred channels.

It effectively bridges the gap between initial sales inquiries and dedicated customer support, leading to improved conversion outcomes.

The Future of Commerce: A Shift to Chat

“‘Traffic’ and consequently ‘conversion’ are poised for substantial growth, migrating from traditional retail spaces and web browsers to chat applications,” states Weissbeck.

He further posits that conversational commerce will emerge as a pivotal component of the broader commercial landscape.

This new paradigm will unify all channels and unlock the potential for enhanced personalization through the unique identification of customers via their phone numbers.

Challenges and Opportunities in the Evolving Customer Journey

This transition, according to the Charles founder, presents both “tremendous challenges and opportunities” for businesses regarding customer journey design and the underlying technology infrastructure.

Currently, outside of Asia, the existing tech stack is largely designed around traditional webshops and email marketing.

“Our technology ultimately serves as the operating system for companies to effectively navigate this evolving landscape,” adds Tussing.

The core functionality of the software integrates chat applications with shop and CRM backends, presented within an intuitive interface that prioritizes the human chat sales agent.

This agent is supported by the capabilities of chatbots and artificial intelligence.

Industry Validation and Potential for Growth

Luca Bocchio, a partner at Accel, highlights that conversational commerce is rapidly becoming a “critical channel for brands”.

He believes this trend will fundamentally reshape brand-customer interactions, creating opportunities for innovative tools to emerge.

Bocchio suggests that Charles possesses the potential to be a leading tool in this emerging category.

Competitive Landscape and Charles’ Unique Approach

When discussing competitors, Weissbeck points to existing customer service tools like Zendesk, which are beginning to incorporate chat applications as supplementary channels.

These tools, however, are typically built upon a “ticketing” system, optimized for efficient resolution of customer inquiries and focused on service cases rather than direct sales.

A “Feed” Logic for Enhanced Customer Relationships

In contrast, Weissbeck explains that Charles is founded on a “feed” logic, presenting customer interactions as an ongoing conversation and a holistic relationship.

This mirrors the customer’s own perception of the interaction.

“Furthermore, we offer deep integration with shop and CRM backends, enabling agents to easily facilitate sales, create shopping carts, or generate contracts within a highly intuitive and user-friendly interface,” says Tussing.

This interface is designed to empower agents, supported by chatbots, rather than replace them.

Revenue Model: A Shared Incentive

The revenue model employed by Charles is straightforward: Businesses pay a monthly base fee to cover the platform’s fixed costs.

In addition, the startup earns a percentage of completed sales, creating a mutually beneficial incentive structure.

“We take a small share of the net sales, ensuring we are co-incentivised,” clarifies Weissbeck.