Information on the Target

Skit, formerly known as vernacular.ai, is an AI-first SaaS startup specializing in voice automation technology. Established in 2016 by IIT Roorkee alumni Sourabh Gupta and Akshay Deshraj, Skit provides a suite of speech and language solutions aimed at automating call center operations for enterprises. With over 10 million hours of training data, their flagship product, the Vernacular Intelligent Voice Assistant (VIVA), is capable of responding in more than 16 languages and 160 dialects, mimicking human-like conversations to enhance customer interactions.

Industry Overview in India

The voice automation industry in India has been witnessing significant growth, driven by the rising demand for cost-effective customer service solutions. With the rapid digitalization of businesses across diverse sectors such as banking, insurance, e-commerce, and logistics, the need for efficient communication systems is more critical than ever. The global contact center market is projected to attain a value of $496 billion by 2027, presenting a substantial opportunity for AI-driven solutions like those offered by Skit.

Furthermore, the Indian market is characterized by a burgeoning tech-savvy population and an increasing rate of mobile and internet penetration. This shift has led to heightened expectations for customer service that is not only efficient but also personalized. Consequently, businesses are increasingly adopting AI technologies to improve interaction processes and ensure customer satisfaction.

Additionally, with an investment climate that is becoming more favorable for tech startups, India is poised to be a key global player in the voice automation domain. The presence of a robust startup ecosystem and supportive government initiatives further fuel the growth potential in this sector.

The Rationale Behind the Deal

Recently, Skit secured $23 million in Series B funding, led by WestBridge Capital, with contributions from Kalaari Capital, Exfinity Ventures, and other investors. The funds are earmarked for enhancing sales and marketing efforts, bolstering delivery capabilities, and accelerating research and development to foster product innovation. As Skit expands its presence in both Indian and global markets, this funding is crucial for scaling operations and meeting the growing demand for voice automation solutions.

The company has already demonstrated impressive growth, increasing its revenue and customer base by over four times since its last fundraising round in May 2020. The additional capital will help Skit capitalize on its established partner network and expansive market reach.

Information about the Investor

WestBridge Capital is a prominent venture capital firm known for investing in technology-driven companies across various sectors. With a focus on supporting businesses that demonstrate unique product offerings and growth potential, WestBridge provides not only financial backing but also strategic guidance. Their recent investment in Skit is a testament to their confidence in the startup's innovative capabilities within the voice AI market.

Sashi Reddi, Venture Advisor to WestBridge Capital, highlighted the firm’s excitement in backing Skit, recognizing their success with India's largest companies and strong trajectory towards entering the US market, where there is an urgent demand for voice AI solutions.

View of Dealert

Investing in Skit at this stage appears to be a strategic move, given the rapid expansion and evolution of voice automation technologies. The significant uptick in revenue growth and customer acquisition reflects a robust business model that positions Skit favorably in the market. As enterprises increasingly seek to improve their customer service capabilities while managing costs, Skit’s solutions offer tangible benefits that align with current industry demands.

Moreover, the projected growth of the global contact center market provides a supportive backdrop for Skit’s expansion efforts. By focusing on innovation and personalizing caller experiences, the startup is addressing a critical need in the industry, which should bolster its market presence and relevance in the coming years.

However, Skit must navigate the competitive landscape carefully, particularly as it targets the US market, where established players abound. Success in this venture will depend on their ability to differentiate their offerings and capitalize on existing customer relationships in the face of growing competition.

In conclusion, Skit's strong growth metrics, coupled with favorable market dynamics and continued investor confidence, suggest that it represents a promising investment opportunity that could yield significant returns as it scales globally.

View Original Article