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Home Technology AI

Cue secures $2 million to boost AI-powered customer service

Hauwa Ali by Hauwa Ali
March 2, 2024
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Cue secures $2 million to boost AI-powered customer service
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Cue, a South African startup that offers AI-powered customer service solutions on WhatsApp and social media platforms, has announced that it has raised $2 million in seed funding from angel investors. 

The startup plans to use the funds to enhance its AI integration and expand its market reach

The funding round follows a $500,000 pre-seed round that the startup secured in October 2023.

The startup, which was founded in 2018, works with more than 300 clients across various sectors, such as education, insurance, and retail. It provides products such as chatbots and live chats on WhatsApp, enabling businesses to provide fast, seamless, and personalised customer service experiences. It also helps businesses reduce communication wait times and increase customer satisfaction and loyalty.

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The startup has also expanded to the United Kingdom, where it has established a presence and a client base.

Read also: MTN, Adbot offer AI-powered ads for small forms in Nigeria

 A new leadership team and a deeper AI integration

As part of the funding round, Cue has also announced some changes in its leadership team. Rhett Trickettl, the co-founder and former CEO of the startup, will become the Chief Product Officer, overseeing product development and innovation. Ryan Egnos, the co-founder and former Chief Revenue Officer, will become the CEO, leading the overall strategy and growth of the startup. Richard Nischk, the former Chief Technology Officer, will become the Chief Revenue Officer, managing the sales and marketing functions.

The startup plans to use the funds to improve and deepen its AI integration on its customer service platform, as well as to support its growth and expansion plans. The startup aims to provide businesses with automated routine customer inquiries, as well as to help them optimize their customer engagement strategies and improve their support by leveraging insights and data analytics.

Richard Nischk, the new Chief Revenue Officer, said that the investment will enable Cue to deliver AI-powered solutions for the customer service landscape.

“With deeper AI integration, businesses can streamline their support operations and help their customers in a much faster and more valuable way,” he said.

A growing AI market in Africa

Cue is part of a growing AI market in Africa, which is projected to reach $6.9 billion in 2024 and $18.3 billion by 2030, according to a report by Grand View Research. The report attributes the growth to the increasing adoption of AI solutions by various industries, such as healthcare, agriculture, finance, and education, as well as the rising demand for smart and connected devices.

Recently, some African startups have also raised funds and launched products that leverage AI technology. For example, Roboost, an Egyptian AI-driven logistics startup, raised $3 million to diversify its services and expand its operations. Jetstream Africa, a Ghanaian digital freight forwarder, launched Jetvision.ai, an AI-enabled platform for cross-border trade in Africa.

In Kenya, the AI bill is also generating buzz as it seeks to establish the Kenya Robotics and Artificial Intelligence Society, a body that will regulate the use of robotics, AI, and the Internet of Things (IoT) in the country.

With this funding round, Cue is poised to boost its AI-powered customer service platform and expand its market reach. The startup is also committed to providing innovative and sustainable customer service solutions for African businesses and to supporting the aspirations of the African community.

WigWag Introduces AI-powered WhatsApp payment service 

Some challenges Cue faces in expanding its market reach

The South African firm is having some difficulty growing its customer base. Among these difficulties are:

Competition from other customer service platforms: Cue must contend with other platforms that provide comparable or dissimilar solutions because it is not the only participant in the customer service industry. Examples of well-known customer support platforms with a broad client base and a global reach are HelpCrunch, Freshdesk, and Zendesk. Cue needs to set itself apart from these rivals and highlight its special selling point and edge over the competition.

Concerns about regulations and compliance: Cue must abide by local laws and regulations pertaining to data privacy, security, and consumer protection because it operates in several different nations and areas. Cue must, for instance, abide by the NITDA in Nigeria, the POPI Act in South Africa, and the GDPR in Europe. These laws may differ from nation to nation and may place limitations or specifications on Cue’s activities and offerings.

Cultural and linguistic diversity: Cue must make sure that its customer care solutions are relevant and appropriate for the diverse range of backgrounds, cultures, and languages it serves. Cue must, for instance, localise its content and messaging, offer multilingual support, and comprehend the tastes and requirements of various clientele groups. Cue could have to spend money on training, tools, and cultural sensitivity in addition to translation and localization.

Tags: AI-poweredCue
Hauwa Ali

Hauwa Ali

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