DXwand Secures $4M in Series A Funding to Expand Conversational AI Platform
DXwand currently serves over 40 clients across various sectors, including healthcare, e-commerce, fintech, telecom, government, and legal, with over 5 million facilitated conversations.
DXwand, a startup based in Cairo and Dubai, has raised $4 million in Series A funding to further develop and expand its conversational AI platform serving enterprises in the Middle East and North Africa (MENA). The investment round was led by Shorooq Partners, based in the UAE, and Algebra Ventures in Cairo, with participation from existing investor Dubai Future District Fund, Per Techcrunch report.
DXwand, founded by former Microsoft executive Ahmed Mahmoud, focuses on leveraging conversational AI to automate customer service and employee assistance for businesses in the MENA region. The startup initially targeted small businesses with a customer-centric chatbot designed for sales over social media platforms. However, it later pivoted its business model to cater to corporates and enterprises, with a focus on knowledge mining and retrieval augmented generation (RAG) domains.
The platform employs machine learning and AI to automate text and voice conversations across various platforms, including call centers, Facebook Messenger, WhatsApp, SMS, and websites. DXwand's AI-powered software is capable of understanding slang in both Arabic and English, providing analytical tools and dashboards to offer insights into conversations. The platform aims to streamline processes for businesses by eliminating the need for manual data labeling through its knowledge mining capabilities.
DXwand plans to use the Series A funding to expand further in the MENA region, with a focus on Saudi Arabia and Africa. The investment will also support the startup's research and development efforts in generative AI, knowledge mining, and omnichannel conversational AI. DXwand currently serves over 40 clients across various sectors, including healthcare, e-commerce, fintech, telecom, government, and legal, with over 5 million facilitated conversations.
The funding round follows DXwand's earlier investments, including $1.3 million in seed extension from SOSV and other investors and $1 million in pre-Series A funding from the Dubai Future District Fund. The startup recorded over $5 million in annual recurring revenues in 2023, representing a 2x year-over-year growth, and plans to strengthen its position in the market through further expansion and research efforts.