Rasa Technologies, a startup in the conversational AI space, has closed a $30 million Series C funding round to develop generative AI models for advanced chatbots. The funding round was co-led by StepStone Group and PayPal Ventures, catapulting Rasa’s total funding to over $70 million.
The funding signifying Rasa’s prowess in the conversational AI domain will fuel the company’s continued growth. Rasa’s CEO, Melissa Gordon, expressed confidence that this capital injection will fortify the company’s position as a frontrunner in the global conversational AI market.
She added that the company is unique in providing the power of large language models (LLMs) with the control and certainty of traditional natural language processing-based AI chatbots.
“Without this, a user would be leaving it up to the LLM to make business process decisions that an enterprise would need to dictate, so you get the best of both worlds with Rasa’s approach,” she said.
Enabling Global Brands with Open and Extensible AI Solutions
Rasa Technologies empowers leading global brands to meet customer needs through open and extensible conversational AI. The company offers a range of sophisticated AI assistants aligned with customers’ business logic, reducing the risk of AI hallucinations, where chatbots generate misleading replies.
Rasa’s product lineup includes Rasa Pro, a state-of-the-art conversational AI framework for enterprises. Leveraging powerful generative AI models, Rasa Pro enables the development of customized chatbots capable of engaging in nuanced conversations, ideal for businesses seeking sophisticated interactions.
For less complex needs, Rasa provides Rasa Studio, a user-friendly, low-code interface allowing anyone to design, build, test, and continuously improve conversational chatbots.
Built with Rasa Pro, Rasa Studio utilizes Conversational AI with Language Models (CALM) technology to combine LLMs’ flexibility with traditional chatbots’ control and certainty.
Customer Trust and Market Presence
Rasa has an impressive clientele, including two of the world’s top three banks, major insurance providers, and global travel and hospitality companies. Developers have downloaded their tools over 50 million times, demonstrating widespread adoption and trust in the developer community.
The notable participation of PayPal Ventures in this funding round marks the payment platform’s first significant AI investment. According to PayPal Ventures Partner Alan Du, integrating Rasa’s technology into their customer service portal has already yielded improved customer engagement.
Strategic Use of Funds
Rasa plans to utilize the funds to strengthen its technological leadership, expand its team across North America and Europe, and redefine the possibilities for businesses using AI chat and voice platforms at scale.
“While many in the industry claim to incorporate generative AI, often it’s merely an addition of LLMs onto their existing platforms,” said Rasa co-founder and Chief Technology Officer Alan Nichol.
“So, we took a step back and asked ourselves, what is the right architecture for an LLM-native approach? Instead of the old and new sitting side-by-side, we invented a new paradigm that uses LLMs for what they’re great at while incorporating your business logic and brand in a foolproof way,” he added.
With Rasa Technologies at the forefront of transforming how businesses interact with customers, the recent funding round signifies a significant milestone in the evolution of conversational AI.
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