Fleksy Raises Series A Funding to Expand Keyboard SDK Business

Fleksy Secures $1.6 Million Series A Funding to Expand B2B Focus

Barcelona-based Fleksy, a developer of mobile keyboard software, has successfully raised $1.6 million in a Series A funding round. This investment will be utilized to strengthen the company’s shift towards a business-to-business (b2b) model, specifically focusing on its white-label SDK for both Android and iOS platforms.

Investment Details and Previous Funding

The funding round was spearheaded by Inveready, a Spanish asset management company. Existing investors, including SOSV and Simile Venture Partners, also participated in this follow-on funding.

With this Series A round, the total funding secured by Fleksy since its inception in 2015 now approaches $3 million (€2.5 million).

From Consumer Keyboard to SDK Provider

Fleksy initially established itself as a prominent player in the third-party smartphone keyboard market. The company originally developed a productivity keyboard known as ThingThing.

Subsequently, Fleksy acquired the assets of the US-based custom keyboard, Fleksy, which had become inactive after its development team joined Pinterest. The company then concentrated its efforts on further developing the Fleksy keyboard.

Challenges in the Consumer Keyboard Market

Monetizing within the consumer custom keyboard space presents significant challenges. Features such as next-word prediction and swipe input are now integrated into native smartphone keyboards, diminishing the appeal of third-party add-ons.

Furthermore, major technology companies like Apple and Google sometimes implement policies that can hinder the adoption of third-party keyboards, potentially discouraging users from switching away from their native options.

The Launch of the Fleksy SDK

In response to these challenges, Fleksy introduced an SDK last year. This allows the company to license its keyboard technology to other application developers and businesses.

The SDK enables these partners to integrate powerfully predictive, context-aware, and customizable AI keyboard software into their own applications, with options for branding and adaptation.

SDK Capabilities and Potential Applications

The keyboard SDK also provides opportunities for third parties to gain insights into their user base and potentially drive sales.

Fleksy highlights several potential features available through the SDK, including the ability to integrate context-specific advertising directly into the keyboard. A forthcoming CRM feature is also planned, which will allow businesses to send marketing materials, invoices, and even process payments directly through the keyboard interface.

Focus on Security

Security-focused features are also under development, offering custom modifications to prevent data leaks, monitor employee activity, secure messages, and mitigate fraud.

Continued Presence in the Consumer Market

Alongside its b2b initiatives, Fleksy maintains a presence in the consumer market, emphasizing user privacy as a key differentiator compared to alternatives like Google’s Gboard. The company has recently explored attracting consumers with art-themed keyboards.

Shift in Strategic Focus

However, the company’s primary focus has demonstrably shifted towards b2b, reflected in the prominent ‘Fleksy for Business’ branding and a redesigned website with a deeptech aesthetic.

The consumer keyboard will remain available, catering to dedicated fans and serving as a valuable testing ground for new features.

CEO’s Perspective on the Strategic Shift

“Consumer markets are difficult when major players don’t compete fairly,” explains Fleksy’s CEO, Olivier Plante, who also previously led ThingThing. “We’ve identified a profitable niche: empowering others to create exceptional keyboard experiences through licensing fees.”

He adds, “Building what we have is complex, making it a straightforward choice for digital companies.”

Data Privacy and SDK Usage

Addressing concerns about data privacy, Plante emphasizes that the Fleksy SDK provides tools for companies to achieve their objectives. He clarifies that Fleksy’s role is purely technological, and the company does not dictate its clients’ privacy policies.

He assures, “Fleksy Consumer Apps will always prioritize privacy – our core principles remain unchanged.”

Growth and Future Plans

Fleksy reports having “dozens” of companies currently licensing its technology, with an additional 50 in its sales pipeline. Revenue from the SDK business has reportedly increased tenfold in the past year.

This substantial growth explains the relatively modest size of the Series A funding round, according to Plante.

“We only sought this funding because we are already generating significant revenue,” he states, adding that the purpose of the Series A is to accelerate expansion.

Allocation of Funds

The new funding will be allocated to support growth initiatives, expand the team (currently comprising 13 members), and broaden the company’s client portfolio.

Key Markets and Customer Base

Fleksy’s primary markets for licensing the keyboard technology are currently the US and Europe, but the company serves customers globally.

The SDK is attracting a diverse range of customers, including those in the digital health, fintech, and gaming industries.

Customization and Control

“We receive numerous inquiries for a customized keyboard experience, as showcased on our website,” Plante notes. “These industries, and many others, will benefit from Fleksy’s technology.”

He further explains, “Our clients have diverse needs, and because we’ve developed everything in-house – without relying on third-party black boxes – we can tailor everything to their specifications. This level of customization is unmatched in the market.”

“Fleksy SDK offers extensive modification options: from layout and dictionary to the core engines powering autocorrect, predictions, and sentiment analysis. This makes us the ideal partner, and our vision is ambitious – ‘Typing on a screen will be typing on Fleksy’ in the future.”

Board Appointment

As part of the Series A funding, Ignacio Fonts from Inveready will join Fleksy’s board of directors.

Investor Commentary

In a statement, Fonts commented, “We are excited to join the Fleksy team, which has achieved global leadership in keyboard technology – a critical control point for personal computing devices. This funding will enable them to accelerate the development of a compelling roadmap, offering users new ways to interact with their devices and providing companies with valuable customer insights.”