(Reuters) – Customer relationship software firm DevRev has raised $100.8 million in series A funding round from Khosla Ventures and others, as interest in firms utilizing artificial intelligence continues to grow.
The latest funding round has brought the Palo Alto-based company’s valuation to $1.15 billion, marking its entry into the unicorn club.
WHY IT MATTERS
The AI boom has reinvigorated venture capital funding, with investors making significant bets on AI startups in hopes of substantial returns from widespread AI adoption.
Investments in AI startups skyrocketed to $24 billion from April to June, more than doubling the previous quarter’s figure, according to data from Crunchbase.
As of 2024, 38 startups have a valuation of over $1 billion, with the Elon Musk-led xAi leading the pack with a valuation of $24 billion, according to Techcrunch.
CONTEXT
DevRev which was founded in October 2020 by former Nutanix chief executive officer Dheeraj Pandey, is an AI-driven Customer relationship software provider which helps connect end users, sellers, support, product people, and developers on a common platform.
Khosla Ventures, which has been backing DevRev since 2021, has also backed several high-profile names, such as Instacart, DoorDash, and Stripe.
QUOTE
“Design will play a key role in building trust with end users, who have inevitably begun to witness the AI hype cycle of broken prototypes and bespoke one-off GPT wrappers that are inherently unmaintainable and not secure,” said Dheeraj Pandey, CEO of DevRev.
(Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Tasim Zahid)
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