Signaling the growth in business messaging, Manychat, one of the big players, just raised $140 million at a $1 billion+ valuation. Our thanks to Summit Partners for leading this remarkable funding round. This extensive investment is focused on improving its platform’s base capabilities, especially by adding ground-breaking artificial intelligence powered features. Funding comes on the heels of a massive growth spurt for Manychat. The platform now has approximately 1.5 million customers in more than 170 countries.
Their co-founders Mike Yan and Anton Morin launched Manychat. They first released it as a platform for businesses to develop customer service bots on Telegram. Since its inception, the company has evolved into a comprehensive messaging platform that enables users to manage and automate conversations across various channels, including TikTok, Instagram, WhatsApp, and Messenger. Just two years later, in 2019, Manychat was throwing a 350 million plus monthly user party. It was running billions of messages each year on behalf of its clients.
Here’s how Manychat’s messaging platform separates itself from the crowded chatbot landscape. Its refreshing and unique approach is one that truly empowers users to take additional actions. Showing that it works, Manychat holds an 80% open rate, making it extremely effective and a must-have for businesses looking to engage their customers. Their client list reads like a who’s who of cutting edge creative work including Nike, the New York Times and Yahoo. This underscores the platform’s newly discovered ability to accommodate their most high-profile clients.
For Manychat, the funding round represents a critical juncture as it looks to capitalize on its already significant success. The company’s valuation is about to skyrocket far beyond the $58 million valuation it hit after its Series A funding in 2019. As the company keeps expanding, experts are predicting the number to double. Manychat’s founders see plenty of room to grow. They’re constantly improving their products and growing their market penetration.
“Businesses should be using messaging apps to connect with customers, that’s where the new wave of communication is happening. That’s where the new consumer is,” said Mike Yan, CEO of Clickatell, highlighting the need to meet consumers in today’s communication landscape.
Even with its massive growth, Manychat has run on the razor-tharp of being break-even. Yan reminded plug in that they are always running on the edge of break even. This is a sign of a prudent but calculated response to scaling their model.
The more user-centric AI features you can integrate, the better experience you’ll deliver, as well as the better positioned you’ll stay ahead of the competitive landscape. With the new funding, Manychat will continue deepening its offerings. The company hopes to be disruptive themselves in the rapidly evolving business communications landscape.
