Malaysia's Respond.io raises $62.5M to acquire rivals in US, Europe

A Kuala Lumpur-based startup that helps businesses manage customer conversations across messaging platforms has closed a $62.5 million Series B round and set its sights on strategic acquisitions in Western markets.

Respond.io announced the funding round led by Camber Partners, with participation from Endeavor Catalyst and existing investors, according to details first reported by TechCrunch. The company previously raised $7 million in Series A funding in 2022.

The platform has reached $35 million in annual recurring revenue with 169% year-over-year growth while maintaining a 30% profit margin. The company now processes 2 billion messages per quarter for mid-to-large B2C businesses.

Why it matters

Respond.io's growth trajectory and acquisition strategy signal a broader shift in how businesses handle customer interactions. As messaging apps displace traditional email and phone support, companies built specifically for multi-channel messaging hold structural advantages over legacy platforms that retrofitted messaging capabilities. The company's usage-based pricing model—charging for conversation volume rather than per seat—also positions it favorably as AI agents handle more customer interactions without human involvement.

Built for messaging from the ground up

Co-founder and CEO Gerardo Salandra, who previously worked at IBM, Google, and Runtastic before its acquisition by Adidas, launched Respond.io in Hong Kong in 2017 alongside CTO Hassan Ahmed and COO Iaroslav Kudritskiy. The team relocated to Malaysia two years later.

The platform integrates customer conversations across WhatsApp, Instagram, TikTok, Messenger, Line, Telegram, WeChat, voice calls, and web chat. It deploys AI agents to handle high-volume inquiries, qualify leads, and close sales autonomously.

Respond.io targets what Salandra calls "high-consideration" businesses—sectors where customers need dialogue before purchasing, including healthcare, automotive, retail, education, and travel. The sweet spot sits between 200 and 10,000 employees.

Salandra argues that incumbent platforms built around email and phone support treat messaging as an afterthought, creating an opening for purpose-built competitors. The volume of message data creates what he describes as a "data flywheel"—more messages improve AI performance, better AI attracts more customers, and more customers generate additional messages.

Geographic expansion through M&A

The company currently derives roughly 30% of revenue from Asia-Pacific, 30% from Latin America, and 20% from the Middle East and Africa. North America and Western Europe combined represent just 20% of revenue, but Salandra identifies these regions as the fastest-growing segments.

"They took longer to make the change, but now they're moving very rapidly into messaging channels," Salandra said. He expects both regions to become the company's largest segment within two to three years.

With the new capital, Respond.io plans to pursue both bolt-on technology acquisitions and established teams with strong customer bases in strategic markets. Salandra noted that acquiring the right company could save six months to a year of organic expansion effort. The company is already in discussions with potential acquisition targets.

Despite the funding influx, Salandra emphasized financial discipline. "We don't want to be a growth at all costs company," he said, while acknowledging his ultimate ambition: "Ringing the bell at Nasdaq."

These details were first reported by TechCrunch.