Messaging specialist Webio has raised $4 million (€3.8 million) in investment in a Series A funding round that will help the company to further develop its conversational artificial intelligence technology and expand its team.
The funding round was led by Finch Capital. Webio, which was founded in 2016, said it would use the funding to triple its research and development team, and grow its sales, marketing and customer support teams to keep pace with demand from the UK and Europe. Overall it expects to double its staff numbers from a current 17 as a result of the new funding.
Webio helps clients in financial services, online retailers and utility companies to communicate with their customers on sensitive subjects such as credit, collections and payments. Its clients include The Very Group, Energia and Littlewoods. Early backers include Enterprise Ireland and EIT, and the company raised €1.5 million in a pre-Series A round last year.
The digital shift triggered by the Covid-19 pandemic combined with the economic uncertainty is expected to drive demand for the company’s services, which can make difficult conversations about payments easier through the use of conversational AI.
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“Conversations about money are stressful and difficult, not only for the customer but also for agents tasked with having these conversations. Going digital means companies can create a whole new set of digital experiences that help customers feel more confident in having those difficult conversations and ultimately, stop them from falling into unnecessary and significant financial difficulty. And we are excited that Webio’s conversational AI is enabling companies to engage with customers in a more empathetic manner, at scale,” says Cormac O’Neill, co-founder and chief executive of Webio.
“We are growing at more than 100 per cent year on year, and we are targeted to double our headcount with this investment in the next six months.”
Guiding conversations
Using its technology, customers can make queries, change payment dates, or organise a new repayment schedule. It can also analyse what is said and how it is said, identifying potential vulnerabilities in customers and figuring our the best way to respond and guide conversations through a range of best next steps.
Mr O’Neill said the company may also look to raise additional capital to enter new markets.
“There are very exciting times ahead for us. We are certainly in the right market and at the right time,” he said.
The shift to online spending has led to an increase in the buy now/pay later options, with companies such as Klarna and Afterpay entering the market. The market for such solutions is expected to reach $91 billion by 2028. However, concerns have been raised by consumer organisations about encouraging customers to take on unsustainable debt.
Combined with the ongoing economic uncertainty, companies may experience more late payments, bad debt and pressure on cash flows.
“Webio is reimagining the way customer credit conversations take place in the collections industry. This sector is ripe for disruption, its approach to its customers is outdated and it’s an extremely large market which is set for significant growth,” said Mike Brennan of Finch Capital. “Webio has established itself as an award-winning provider with triple-digit growth in this market and is well-positioned to help the sector overcome key challenges around digital transformation and the adoption of AI.”
