GoingVC Partners is the investment vehicle of GoingVC. Interested in co-investing? Join GoingVC Angels for access to high-quality, pre-diligenced deal flow and opportunities like this. For more about GoingVC Partners, click here.
We are delighted to share our latest investment in TheLoops.ai. GoingVC Partners is thrilled to partner with Somya, Ravi, and the entire TheLoops.ai team to support them in building an intelligent support operations platform for the $1T customer support and experience market.
TheLoops.ai is an AI-driven platform that transforms customer support operations for enterprises. The platform unifies data from multiple sources, providing a 360-degree view of customers, and automates ticket classification and routing. TheLoops.ai enables customer experience teams to deliver personalized and efficient support to customers, while reducing costs and increasing customer satisfaction.
Customer support is a critical function for any business, but it is plagued by inefficiencies, errors, and siloed data. Of the millions of customer support tickets created every year, most are handled manually by agents who have to switch between different systems and enter data repeatedly. In addition, agents lack a complete picture of the customer’s history, preferences, and needs, resulting in suboptimal interactions. These challenges affect the quality of customer experience and the bottom line of businesses.
TheLoops.ai leverages AI-powered automation to solve these problems. The platform provides businesses with low code customizability, granular user feedback, and real-time insights into customer behavior and sentiment, allowing them to automate routine support tasks, proactively address customer issues, and deliver hyper-personalized support experiences.
We Love It: TheLoops.ai
The Product: Platform that leverages AI and automation to optimize customer support operations, enhancing customer satisfaction and driving cost efficiencies.
The Team: Seasoned entrepreneurs with deep expertise in enterprise software, customer support, and AI-driven solutions.
Somya Kapoor (Co-Founder and CEO)
- Over 15 years of experience building ML and predictive analytics enterprise products and their go-to-market, working with the likes of SAP and ServiceNow.
- At ServiceNow, she led expanding the ITSM portfolio to include an AI/ML strategy that included release planning and revenue management.
- At her previous startup, she was responsible for building an autonomous service desk solution which empower users without the use of service tickets.
- Recurring author for several publications and a speaker at numerous Enterprise Software conferences.
Ravi Bulusu (Co-Founder and CTO)
- Over 20+ years of experience in building and scaling products to cater to large enterprises, holding senior product management roles at companies such as Splunk and VMWare.
- Serial Entrepreneur - TheLoops is Ravi’s sixth startup.
- His previous roles include CTO and Head of Engineering at Aisera, Chief Architect at Caspida (acquired by Splunk), and Senior Staff Engineer at VMWare.
- Holds numerous patents, and has been working in real time machine learning for 25+ years.
- Expertise in distributed computing, real time analytics, and high availability products.
The founders' experience also gives them a significant advantage in navigating the complex enterprise software market and making a product that resonates with enterprise customers.
Top-tier investors: Current investors include WestWave Capital, Tidal Ventures, Dell Technologies Capital, the CTO of PagerDuty (Mkt Cap: $2B), CRO of Segment (acq. $3.2B), and the CEO of Packet (acq. $335M).
Unit Economics and Traction: TheLoops.ai has demonstrated impressive metrics since its inception, including $1.1 million in ARR, 130% net revenue retention, and zero churn. The company also boasts over $3.9 million in engaged pipeline, including growing and established SaaS companies.
The company's transparent and easy to understand business model combines subscription and enterprise contracts, providing a flexible pricing structure that caters to different customer needs. The proof is in the pudding, with the company landing blue chip customers such as Paypal, Equinix, Upstart and UserTesting.
Customer experience today is broken, beset by several pain points. The Web1 business stack was defined by having separate systems for sales, marketing, support and customer success, leading to the pain points including manual data entry, disparate data sources, reliance on expensive, internal data scientists and data engineers, and disjointed workflows among CX teams.
Manual data entry can result in significant errors and delays, while disjointed data sources can lead to incomplete or inaccurate customer profiles. These challenges have driven companies to invest in a more intelligent business stack.
Benefits of TheLoops.ai’s platform include:
- Reduced Response Times: The platform frees support agents to focus on complex issues and high-value customer interactions by automating routine support tasks and improving productivity and service quality.
- Enhanced Customer Experience: The platform provides real-time insights into customer behavior and sentiment, enabling businesses to identify and address potential issues before they escalate proactively.
- Cost Efficiencies: The platform's ease of integration through low-code with existing systems and customizable workflows also makes it a flexible and scalable solution without the need for extensive development resources.
Organizations reap considerable benefits in terms of increased sales conversions (15%-20%), decreased service costs (50%), and improved customer satisfaction (10%-20%).
Benefits to consumers include:
- Efficient Support: By leveraging AI-powered automation and analytics, the platform can quickly and accurately resolve customer issues, reducing wait times and improving overall satisfaction.
- Personalized Support: The platform's real-time insights into customer behavior and sentiment enable businesses to identify and address potential problems before they impact the customer experience.
- Preferred Communication Channel: The platform's seamless integration with various communication channels, including social media, chatbots, and voice assistants, ensures that consumers can reach customer support in their preferred way, providing greater convenience and accessibility.
The intelligent customer support software market is a competitive one, with several established players such as Zendesk, Kustomer, and Freshdesk, as well as emerging companies such as Gladly and Helpshift. Within this market, a host of companies offer NLP based analytics - SupportLogic, IrisAgent, Frame.ai and AptEdge.
These competitors offer similar AI-driven platforms with varying degrees of automation, predictive analytics, and low-code integrations. However, these companies are incredibly limited in scope - focusing on support data only.
In comparison, TheLoops.ai pulls in contextual data from multiple sources, drives insights from user behavior data, and has a strategy to grow organically within an organization. The platform delivers personalized customer experiences through hyper-personalization, granular user feedback, and omnichannel support. These features enable it to provide its customers with increased efficiency, improved customer satisfaction, and reduced churn.
Competitive Advantage: AI-driven platform vs traditional support software; allows TheLoops.ai to provide actionable insights, hyper-personalization and proactive actions.
TheLoops.ai does not have a direct competitor in the intelligent support operations market, as there is no other player currently offering a comprehensive solution that connects customer support data with user behavior data. However, there are several players in the customer support software market that are indirect competitors to the company: Zendesk (launched 2007), Kustomer (launched 2015), and Freshdesk (launched 2010).
These competitors focus on specific aspects of customer support, such as ticketing, chatbots, or CRM. They do not provide a holistic view of customers, nor do they offer predictive insights or hyper-personalization. They also require extensive integrations and customizations to work with existing systems and tools. Recognizing these gaps, TheLoops.ai offers a unique solution that goes beyond support data and empowers businesses with AI-driven insights and actions.
TheLoops.ai’s customers are currently reaping the benefits of this contextual approach with reduced escalations, increased agent productivity, and improved customer satisfaction.
Given the global market size for customer support software, there is enough room for several players. This space has been validated by investments from Sequoia Capital, Tiger Global Management, Accel Partners, Google Ventures, and Salesforce Ventures.
Short term advantages
- Customer satisfaction: By automating routine support tasks, providing predictive insights, and delivering personalized support experiences, TheLoops.ai helps businesses improve their customer satisfaction and loyalty. TheLoops.ai has maintained a 0% churn rate and an exceptional Net Revenue Retention (NRR) of 130%, demonstrating the effectiveness of its AI-driven platform.
- Operational efficiency: By streamlining workflows, unifying data sources, and reducing manual data entry, TheLoops.ai helps businesses improve their operational efficiency and reduce costs. TheLoops.ai has helped customers reduce their escalations by 50%, increase their agent productivity by 30%, and save up to 40% on their support costs.
- Seamless low-code integrations: TheLoops.ai seamlessly integrates with existing systems and tools, ensuring a smooth workflow and reducing the need for extensive development resources. This enables businesses to leverage their existing infrastructure while enhancing the capabilities of their customer support operations.
Long term advantages
- Comprehensive solution: TheLoops.ai offers a comprehensive solution that goes beyond support data and connects customer support data with user behavior data. This enables TheLoops.ai to provide actionable insights and hyper-personalization to businesses, while facilitating organic growth within organizations.
- Scalable platform: TheLoops.ai’s platform is scalable and adaptable to various industries and geographies. The platform can handle large volumes of data and transactions, while providing consistent performance and reliability. The platform can also be customized to suit the specific needs and preferences of different customers.
- AI capabilities: TheLoops.ai has built proprietary AI models that can analyze and contextualize data from multiple sources, predict customer behavior and churn triggers, and provide personalized recommendations and actions. These capabilities enable TheLoops.ai to provide superior insights and experiences to businesses and customers, a data advantage that will only compound over time and drive high switching costs.
Massive Market Opportunity: $14.6B intelligent customer support market globally, doubling YoY.
TheLoops.ai’s go-to-market strategy focuses on entering organizations through support operations, providing a target and efficient approach to capturing new customers. This helps the company establish its platform as a trusted and valuable tool for customer support teams, building a foundation for further expansion to other teams.
The company plans to expand its offering to encompass customer impact insights and CX operations, providing a complete solution for businesses looking to optimize their customer support operations. TheLoops.ai will do this by leveraging partnerships and integrations with popular CX tools, providing a seamless workflow.
Their go-to-market strategy is further supported by a flexible pricing model and a scalable platform, allowing businesses of all sizes to benefit from its AI-driven capabilities.
Tangible Real World Benefits:
Customers have seen tangible real world benefits to using TheLoops.ai platform. Examples include:
- UserTesting saw a 67% reduction in escalations.
- Upstart saw a 25% reduction in churn.
- Equinix saw a 30% increase in agent productivity.
- Paypal saw a 22% reduction in customers contacting them.
A focus on customer satisfaction has resulted in a 0% churn rate, highlighting the effectiveness of its AI-driven platform. TheLoops.ai also has an outstanding NRR of 130% (for reference, a good NRR for a Series A enterprise SaaS company is roughly 97-99%).
TheLoops.ai is at the intersection of several investment trends in enterprise technology. One significant trend is the increasing use of no-code builders in enterprises, enabling businesses to build and deploy software applications without considerable coding expertise. In that vein, TheLoops.ai’s platform is highly customizable, allowing companies to tailor their support operations to their needs without a developer.
The second major trend is the increasing demand for AI-driven solutions to provide new efficiencies to enterprise operations. TheLoops.ai platform does just this, using AI-powered automation and analytics to enable businesses to improve their customer support operations, and in turn improving efficiency and cost savings.
Reaching $100 million in annual recurring revenue (ARR) and a $1 billion valuation is an ambitious goal for any company, but TheLoops.ai has a clear pathway to achieve this level of success. To reach this milestone, TheLoops.ai can take inspiration from companies like ServiceNow, Zendesk, and Kustomer, which have successfully scaled their intelligent customer support software businesses.
Congratulations again to Somya, Ravi, and their entire team. Onward and upward!
Join to receive Venture Capital research, guides, models, career tips, and many other great insights delivered straight to your inbox.