Australian startup Kapiche has raised $1.75M in funding for its AI-powered text analytics software that is helping businesses transform their customer experiences at scale. The round was led by Main Sequence Ventures, with participation from Transition Level Investments, the Queensland Government’s Business Development Fund and River City Labs Accelerator Fund.
In Australia alone, it is estimated that poor customer service is costing businesses more than $144 billion per year (Source: Accenture). Despite having access to more customer feedback than ever before, Kapiche CEO Ryan Stuart says many businesses are still struggling to understand their customers.
“Most companies are surveying their customers but failing to use the data as it is intended, which is to make strategic, insight-driven decisions that increase customer satisfaction and grow revenue,” Stuart explains.
“Our text analytics software gives businesses very clear guidance on which customer issues need to be prioritised to improve their overall customer experience strategy. It also pinpoints the exact return on investment these customer experience initiatives will generate.”
Kapiche offers businesses a fast and effective way to analyse and understand large volumes of text generated from customer and employee survey responses, including NPS (Net Promoter Score), eNPS (Employee Net Promoter Score), CSAT (Customer Satisfaction) and product reviews.
“We saw a huge gap in the market with other text analytics solutions being too expensive, slow to deliver results and labour intensive. Manual processing of this data can cost up to $3 per survey response and other technology solutions available can require over $500k of investment,” Stuart says.
“However, Kapiche customers can process a survey response for less than $0.10, and get the results far quicker with a minimal setup time (in minutes, not days). Thanks to AI, the insights are also much deeper.”
Main Sequence Ventures Partner Bill Bartee says, “We’re excited to be investing in a company like Kapiche that has demonstrated such high growth potential, with customers already across Australia, the US and Europe. It doesn’t matter what kind of business you’re in – improving the experience for your customers is the key to increasing retention, satisfaction and revenue.
“Recent advances with AI technology like Kapiche means they are uniquely positioned to solve this problem and are the type of deep tech company that Main Sequence Ventures likes to back. With 89% of businesses today competing primarily on the basis of customer experience, the need for software like Kapiche is undeniable.”
Kapiche was founded in 2017, after a chance meeting in Grade 8, led high school friends, Ryan Stuart and Kris Rogers on a mission to revolutionise business intelligence.
With a growing international customer base, including American Express, Nissan, Toyota, Global elevator manufacturer Schindler, and a Silicon Valley based social networking app, Kapiche will use the funding to accelerate its global expansion.
For more information about Kapiche, please visit: https://kapiche.com/