Cognigy Raises $44M to Expand Conversational AI Platform

The Rise of AI in Customer Service and Cognigy's New Funding

Artificial intelligence is rapidly transforming customer service operations – a shift significantly accelerated by the recent surge in virtual and digital service delivery.

Today, Cognigy, a startup specializing in low-code tools for integrating AI into enterprise customer service, has announced a new funding round to support its expansion.

Cognigy's Conversational AI Platform

Cognigy offers a low-code conversational AI platform distinguished by its adaptability across diverse applications and geographic regions.

The platform supports 120 languages and can be deployed for both external and internal service applications.

It facilitates voice services, chatbots, real-time agent assistance, usage analytics, and fully automated responses.

Furthermore, Cognigy integrates seamlessly with standard call center software, RPA packages, and can operate in the cloud or on-premise.

Series B Investment Details

The company has secured $44 million in a Series B funding round led by Insight Partners.

Existing investors, including DN Capital, Global Brain, Nordic Makers, Inventures and Digital Innovation and Growth, also participated in this financing.

Prior to this round, Cognigy had raised $11 million and operated bootstrapped for several years.

Customer Base and Market Traction

While Cognigy has not disclosed its valuation, it has cultivated a strong customer base in sectors like transportation, e-commerce, and insurance.

Notable clients include Lufthansa, Mobily, BioNTech, Vueling Airlines, Bosch, and Daimler.

Currently, “thousands” of virtual assistants are powered by Cognigy and are actively deployed in the market.

Expansion Plans

With 25% of its revenue already originating from the U.S., Cognigy intends to allocate funding towards strengthening its presence in the U.S., Asia, and throughout Europe, according to CEO and founder Philipp Heltewig.

The Broad Landscape of Conversational AI

Conversational AI manifests in various forms today.

It can be found in chatbots on websites, providing prompts and real-time feedback to agents, or assisting with HR tasks like booking time off.

It also powers personal assistants for smartphones and home automation systems.

Cognigy's Unique Approach

Numerous companies are developing tools for these diverse use cases.

Cognigy distinguishes itself by offering a single platform capable of addressing a wide range of applications – a “one platform, many uses” approach.

Low-Code Integration and Accessibility

Another key advantage of Cognigy is its focus on low- and no-code tools.

This simplifies the integration of AI into customer assistance processes, enabling not only developers but also data scientists, conversation designers, and non-technical business users to build and deploy solutions.

“The low-code platform helps enterprises adopt what is otherwise complex technology in an easy and flexible way,” Heltewig explained.

Competitors in the low- and no-code conversational AI space include Ada, Talkie, and Snaps.

Flexibility and On-Premise Deployment

Flexibility is paramount for both enterprises and the companies serving them.

This allows companies to scale their usage and enables Cognigy to evolve the platform based on customer needs.

Notably, many customers are opting for on-premise deployments to maintain control over sensitive data.

“Lufthansa could never run its customer services in the cloud because they handle a lot of sensitive data and they want full ownership of it,” Heltewig stated.

Cognigy offers both cloud and on-premise options to accommodate diverse requirements.

Insight Partners' Perspective

Teddie Wardi, an MD at Insight, will be joining the board of directors.

“We are thrilled to be leading Cognigy’s Series B as the company continues on their ScaleUp journey,” Wardi said in a statement.

“Evident by their strong customer retention, Cognigy has created an essential product for global businesses to improve their customer experience in an efficient and effortless manner.

With the new funding, Cognigy will be able to expand their leadership position to reach new markets and acquire more customers.”