Conversenow Secures $15M to Revolutionize Restaurant Drive-Thrus

ConverseNow Secures $15 Million in Series A Funding

Following a $3.3 million seed round completed a year prior, ConverseNow, a company specializing in voice-based AI, has announced a new funding round of $15 million in Series A financing. This round was spearheaded by Craft Ventures.

AI-Powered Ordering Solutions for Quick-Service Restaurants

Based in Austin, ConverseNow provides AI voice ordering assistants – George and Becky – designed for integration within quick-service restaurants. These assistants manage orders received through phone, chat, drive-thru systems, and self-service kiosks.

This implementation allows restaurant staff to dedicate more attention to food preparation and enhancing customer service.

Investment Details and Participants

In addition to Craft Ventures, the Series A round saw participation from LiveOak Venture Partners, Tensility Venture Partners, Knoll Ventures, Bala Investments, 2048 Ventures, Bridge Investments, and Moneta Ventures. Angel investors Federico Castellucci and Ashish Gupta also contributed to the funding.

According to Vinay Shukla, co-founder and CEO of ConverseNow, this new investment brings the company’s total funding to $18.3 million.

Strategic Board Addition

As part of this investment, Bryan Rosenblatt, a partner at Craft Ventures, will be joining ConverseNow’s board of directors. Rosenblatt stated that quick-service restaurants are now well-positioned for digital transformation following the pandemic, and he views ConverseNow as a key player in this evolution.

Significant Growth and Expansion

When ConverseNow initially secured seed funding in 2020, its technology was being piloted in a limited number of locations. Currently, the system is operational in over 750 stores.

The company has experienced substantial growth, with a seven-fold increase in revenue and a five-fold expansion of its workforce.

Addressing Key Industry Challenges

Shukla explained that restaurants, significantly impacted by the pandemic, are now facing two primary challenges: labor shortages and supply chain disruptions. He believes ConverseNow’s technology directly addresses these issues.

Improving Order Efficiency and Customer Experience

The AI assistants are designed to handle peak order volumes, preventing customer wait times and reducing call abandonment rates.

ConverseNow reports that its technology can increase average order values by 23% and overall revenue by 20%, while also freeing up to 12 additional labor hours per store each week.

The Shift Towards Remote Ordering

Rahul Aggarwal, co-founder of ConverseNow, noted a growing preference among customers for remote ordering, leading to increased order volumes. However, he emphasized that multitasking can diminish employee focus.

Reimagining Restaurant Operations

“Implementing ConverseNow allows for a reimagining of restaurant operations,” Aggarwal stated. “Employees can concentrate on food preparation, leading to improved job satisfaction and work-life balance. Simultaneously, customers experience shorter wait times, and operators can process orders more efficiently.”

Market Opportunity and Competitive Landscape

ConverseNow operates within the global restaurant management software market, which Grand View Research forecasts will reach $6.94 billion by 2025.

The sector has seen considerable investor and acquisition activity recently, including Lightspeed’s acquisition of Upserve for $430 million in December, and Sunday’s $24 million funding round for its checkout technology.

Future Development and Investment

The new funding will be allocated to continued development of the company’s line-busting technology, as well as investments in marketing, sales, and product innovation.

Efforts will also focus on building a comprehensive database from customer interactions and streamlining the onboarding process for new clients, particularly the initial menu setup.

Enhancing AI Capabilities

By utilizing artificial intelligence, ConverseNow aims to mitigate issues like background noise and improve order accuracy by predicting customer requests and correcting missing words.

Looking ahead, Shukla and Aggarwal envision the platform incorporating real-time data, such as traffic conditions, weather patterns, and current menu promotions, to further enhance upselling opportunities.