One year after voice-based AI technology company ConverseNow raised a $3.3 million seed round, the company is back with a cash infusion of $15 million in Series A funding in a round led by Craft Ventures.
The Austin-based company’s AI voice ordering assistants George and Becky work inside quick-serve restaurants to take orders via phone, chat, drive-thru and self-service kiosks, freeing up staff to concentrate on food preparation and customer service.
Joining Craft in the Series A round were LiveOak Venture Partners, Tensility Venture Partners, Knoll Ventures, Bala Investments, 2048 Ventures, Bridge Investments, Moneta Ventures and angel investors Federico Castellucci and Ashish Gupta. This new investment brings ConverseNow’s total funding to $18.3 million, Vinay Shukla, co-founder and CEO of ConverseNow, told TechCrunch.
As part of the investment, Bryan Rosenblatt, partner at Craft Ventures, is joining the company’s board of directors, and said in a written statement that “post-pandemic, quick-service restaurants are primed for digital transformation, and we see a unique opportunity for ConverseNow to become a driving force in the space.”
At the time when ConverseNow raised its seed funding in 2020, it was piloting its technology in just a handful of stores. Today, it is live in over 750 stores and grew seven times in revenue and five times in headcount.
Restaurants were some of the hardest-hit industries during the pandemic, and as they reopen, Shukla said their two main problems will be labor and supply chain, and “that is where our technology intersects.”
The AI assistants are able to step in during peak times when workers are busy to help take orders so that customers are not waiting to place their orders, or calls get dropped or abandoned, something Shukla said happens often.
It can also drive more business. ConverseNow said it is shown to increase average orders by 23% and revenue by 20%, while adding up to 12 hours of extra deployable labor time per store per week.
“If you step into restaurants with ConverseNow, you see them reimagined,” Aggarwal said. “You find workers focusing on the job they like to do, which is preparing food. It is also driving better work balance, while on the customer side, you don’t have to wait in the queue. Operators have more time to churn orders, and service time comes down.”
Rahul Aggarwal · ConverseNow co-founder