For makers and artists building customer-facing tools, the landscape is shifting from generic chatbots to sophisticated AI agents that handle high-stakes sales conversations autonomously. Respond.io, a Kuala Lumpur-based platform, has just secured $62.5 million to expand its footprint in North America and Europe, proving that deep integration into messaging ecosystems offers a defensible moat against general-purpose models.
Financial momentum and growth
The Series B funding round, led by Camber Partners with backing from Endeavor Catalyst and previous investors, comes as the company reports $35 million in annual recurring revenue. This represents a 169% year-over-year increase, supported by a 30% profit margin. The startup previously raised $7 million in its Series A round in 2022.
Origins and leadership
Co-founder and CEO Gerardo Salandra previously worked at IBM and Google before joining Runtastic, the fitness app sold to Adidas in 2015. He launched Respond in Hong Kong in 2017 alongside CTO Hassan Ahmed and COO Laroslav Kudritskiy. The team relocated the business to Malaysia two years later.
Why AI agents beat generic models
Respond’s platform enables mid-sized to large B2C businesses to manage customer conversations across WhatsApp, Instagram, TikTok, Messenger, Line, Telegram, WeChat, voice calls, and web chat. Its core value lies in using AI agents to qualify leads and close sales without human intervention.
“You don’t go to a website, put your credit card, and buy a car; you chat with someone, you ask a lot of questions,” said Salandra.
The company targets “high-consideration” sectors such as healthcare, automotive, retail, education, and travel, typically serving businesses with between 200 and 10,000 employees. Salandra notes that while general AI tools like ChatGPT are prominent, Respond is processing 2 billion messages per quarter, a volume that fuels a unique data flywheel.
The data flywheel advantage
Unlike many competitors that charge per seat, Respond bills based on conversation volume, regardless of whether a human or an AI agent handles the query. This model protects revenue as automation increases.
“When fewer humans use your product, they make less money,” Salandra explained. “But we don’t charge like that.”
Existing incumbents in North America and Europe were originally built for email and phone calls, treating messaging as an afterthought. Respond’s early entry has allowed it to accumulate a superior dataset, creating a feedback loop where more messages improve the AI, which in turn attracts more customers.
Strategic expansion in North America and Europe
With the new capital, the company plans to hire, pursue organic growth, and acquire targets. Salandra is looking for two types of acquisitions: bolt-on technology that integrates into the existing ecosystem and established teams with strong customer bases in strategic markets.
“Imagine how many months I can save if I find the right company that maybe already has the clients and the team,” he said. “I can save myself six months to a year through an acquisition.”
Currently, roughly 30% of revenue comes from APAC, 30% from Latin America, and 20% from the Middle East and Africa. North America and Western Europe account for the remaining 20%, but Salandra identifies them as the fastest-growing regions. He expects both markets to become the company’s largest segment within two to three years.
Future outlook
Despite the fresh funding, Salandra remains disciplined. “We don’t want to be a growth at all costs company,” he stated. However, his long-term ambition is clear: “My favorite outcome? Ringing the bell at Nasdaq.”
Key takeaways
- Respond.io has raised $62.5 million to expand into North America and Europe, targeting companies with 200 to 10,000 employees in high-consideration sectors.
- The platform’s unique pricing model based on conversation volume rather than seats protects revenue as AI agents automate more of the sales process.
- By processing 2 billion messages per quarter, Respond has built a data flywheel that allows its AI to outperform newer entrants in the messaging space.
- CEO Gerardo Salandra aims to achieve a Nasdaq listing, while pursuing acquisitions to accelerate market penetration in key Western regions.
