Skit Raises $23M Series B Funding - Westbridge Capital

The Rise of AI in Customer Service: Skit's $23 Million Funding

Conventional voice-based call center operations often prove both complex and expensive. Artificial intelligence and advanced voice technologies are now offering enterprises a pathway to overcome challenges related to scalability and customer engagement within their contact centers, as noted by Skit co-founder and CEO Sourabh Gupta in a discussion with TechCrunch.

Pandemic-Driven Demand and the Opportunity for Skit

The onset of the COVID-19 pandemic triggered an unprecedented surge in call volumes at banking call centers. Customers sought assistance managing their finances amidst the disruption of work-from-home policies and broader economic instability. This situation created a significant opportunity for companies like Skit to provide innovative solutions.

A preference for voice support over self-service options continues to drive increased pressure on traditional Interactive Voice Response (IVR) systems and support personnel to handle all incoming inquiries.

Introducing VIVA: Skit's AI-Powered Voice Automation Platform

Based in Bengaluru, the artificial intelligence SaaS company Skit, previously known as Vernacular.ai, has developed VIVA – an AI-driven voice automation platform. VIVA, short for Vernacular Intelligent Voice Assistant, empowers businesses to automate up to 90% of their call center functions utilizing Natural Language Understanding (NLU) technology.

VIVA boasts support for over 16 languages and 160 distinct dialects, ensuring broad accessibility and effective communication.

Series B Funding and Expansion Plans

Skit recently announced the successful closure of a $23 million Series B funding round. This investment will be used to accelerate growth in both domestic and international markets, including the U.S. and Southeast Asia, and to further enhance its voice automation capabilities.

Founded in 2016, Skit was established by Sourabh Gupta, an alumnus of the Indian Institute of Technology, Roorkee, and Akshay Deshraj.

Investor Details and Total Funding

The latest funding round was spearheaded by WestBridge Capital, with participation from existing investors such as Kalaari Capital, Exfinity Ventures, IAN Fund, LetsVenture, and Sense AI. Angel investors, including Aaryaman Vir Shah of Prophetic Ventures, also contributed to the round. This Series B investment brings Skit’s total funding to $30 million.

Strategic Allocation of Funds

The newly acquired funds will be strategically allocated to bolster sales and marketing efforts, continue research and development to refine personalized solutions and voice products, and facilitate global expansion initiatives.

Gupta shared with TechCrunch that the company intends to “double down and scale operations” in both Indian and global markets, alongside plans to expand its workforce. A new headquarters in New York City will serve as a base for building a strong customer presence in North America.

Impressive Growth and Current Metrics

Since its previous $5.1 million Series A funding in May 2020, Skit has experienced a fourfold increase in both revenue and customer numbers. The company’s average order book has also demonstrated substantial growth, with a Compound Annual Growth Rate (CAGR) of 200-300% annually. Skit currently employs 150 individuals.

Geographic Expansion: U.S. and Southeast Asia

Skit has recently extended its reach into the U.S. and Southeast Asian markets.

Gupta highlighted the significant potential for conversational AI adoption in Southeast Asia, particularly due to the region’s linguistic diversity and multitude of dialects, as revealed in an exclusive interview with TechCrunch.

The company anticipates increased adoption in Southeast Asia, citing similar demographic and business challenges to those encountered in India. The New York City headquarters is positioned within a mature market characterized by advanced technology adoption and robust competition.

Industry Validation and Market Opportunity

Sashi Reddi, a venture advisor at WestBridge Capital, stated that Skit’s success in serving India’s leading companies positions it favorably to enter the U.S. market, where there is a substantial demand for voice AI solutions.

The global contact center market is projected to experience consistent growth, reaching $496 billion by 2027. Skit aims to capture a portion of the $300 billion voice customer service market with its VIVA platform.

Diverse Client Base

Skit’s B2B and B2C clients span a wide range of industries, including banking, insurance, finance, securities, non-banking financial companies, travel, logistics, food & beverage, and e-commerce. The company currently serves over 25 B2B clients, such as Axis Bank, Hathway, Porter, and Barbeque Nation.

Addressing Pain Points in Traditional Call Centers

Traditional call centers are often plagued by high costs, employee turnover, and frustrating experiences for customers. These frustrations stem from lengthy wait times, dropped calls, complex IVR menus, and frequent transfers between agents.

Leveraging over 10 million hours of training data, Skit’s VIVA platform mimics human-like conversation, understands speaker intent, and interprets unique speech characteristics to facilitate more efficient query resolution.

Recognition and Awards

Skit was recognized as one of the startups featured in Forbes 30 Under 30 Asia in 2021.