SleekFlow Raises $7M for Controversial AI in Asia

SleekFlow, based in Singapore and Hong Kong, has secured an additional $7 million to advance its AI technology and expand into Southeast Asia, the Middle East, and Europe

The startup’s fundraising efforts and expansion plans emphasise the rapid emergence of social commerce. In this industry, sellers utilise platforms such as Facebook, Instagram, WhatsApp, TikTok, and YouTube to market their products and attract new customers. In contrast, consumers utilise the same platforms to discover and purchase products.

Social commerce is expanding at a higher pace than traditional e-commerce. By 2028, the estimated market value of social commerce in the Asia Pacific region alone is anticipated to surpass $894 million, a 10.6% increase from 2022.

Conversational AI is a significant component of the evolution of social commerce within this context. With AI-based chat functionality, merchants can expand their customer service to accommodate many users while maintaining a lean operation.

Additionally, it introduces a programmatic element to the process, allowing for the automation of various types of responses to different audiences based on analytics that provide a more comprehensive understanding of what works and what does not, as well as the proper timing and audience.

By 2030, the conversational AI industry is anticipated to reach $49.9 billion, a 24.9% increase from $13.2 billion in 2024.

It is potentially unsurprising to learn that the conversational AI space is congested, given the scaling imperative of e-commerce in general and social commerce in particular. Messagebird, Respond.io, Gupshup, Omnichat, Trengo, WATI, Unifonic, and Verloop are among SleekFlow’s competitors.

According to Henson Tsai, the CEO and founder of SleekFlow, the company distinguishes itself from its competitors by offering more efficient features.

Those features include a user-friendly flow builder that enables the creation of distinct chat experiences for each customer, marketing automation, and omnichannel capabilities (marketing to more than one platform and interface from a single dashboard).

In-chat payment connections, collaborative team features, built-in CRM platform integrations with HubSpot and SalesForce, and e-commerce functionality are all included in the instant checkout capabilities.

Tsai informed TechCrunch that the organisation intends to broaden its platform by introducing automated sales and support journeys in voice, calls, and email. This will provide customers with unparalleled value.

Gao Lei, an AI and big data veteran with over two decades of tech leadership in Silicon Valley, was also recently appointed as the new CTO of the venture.

“Since the appointment of our chief technology officer, Gao Lei, a Silicon Valley veteran, we have substantially increased our engineering endeavours to remain at the forefront of advanced AI and innovative technology,” Tsai stated.

SleekFlow is established on a multi-tier SaaS business model, with an optional add-on for customers who wish to develop and operate a WhatsApp Business messaging channel.

The venture, which is utilised by companies of all sizes in the insurance, healthcare, telecom, and retail sectors, targets sales and marketing teams.

Hong Kong Broadband Networks (HKBN), Delonghi, online furniture company Cellini, and Malaysia’s home consumer electrical appliance manufacturer Khind are among its clients.

SleekFlow is operational in the United Arab Emirates, Brazil, Indonesia, Malaysia, Singapore, and Hong Kong.

Tsai stated that consumer behaviour, particularly in Indonesia, which is expected to become one of the largest consumer markets by 2030, has rapidly transitioned to online purchasing in favour of traditional brick-and-mortar stores.

Tsai also noted that Saudi Arabia and the UAE are likely to be significant markets for social commerce due to their high spending power.

, spearheaded this most recent financing round. Atinum Investment, a Seoul-based venture capital firm, spearheaded this most recent financing round.

Moses Tsang, a former general partner of Goldman Sachs Group and Chairman of Goldman Sachs Asia LLC, and existing backers AEF Greater Bay Area Fund and Transcend Capital Partners also participated. Tiger Global previously led a $8 million Series A funding round for SleekFlow.

The company declined to provide an update on its valuation. However, it is essential to note that its annual recurring revenue (ARR) has increased from approximately $1-2 million in December 2022 to $8-9 million as of June 2024, in addition to the $15 million it has raised thus far.

Additionally, Tsai informed TechCrunch that its staff has expanded from 60 to 160, and its global consumer base has increased by over 5,000.