The excitement surrounding generative AI continues to grow, particularly regarding its potential impact on businesses. However, if you look beyond the hype and high-profile partnerships—like the recent collaboration between OpenAI and PwC—you'll find that companies have already been utilizing customer-facing, no-code AI tools for years to extract information and enhance efficiency.
One of the early pioneers in this realm, Sirion Labs—known for its expertise in contract management—is making headlines by acquiring another enterprise AI innovator, Eigen Technologies. Eigen specializes in parsing and extracting valuable insights from documents in sectors such as insurance, finance, and law.
This acquisition highlights not only the escalating demand for AI solutions in the B2B market but also a broader trend within enterprise IT. Companies are increasingly favoring unified solutions over multiple specialized tools, which is driving consolidation among businesses that offer point solutions.
While the financial details of the deal remain undisclosed, insights into Eigen’s background provide valuable context. Based in London and co-founded by Dr. Lewis Liu, an Oxford Ph.D. in art and physics, Eigen has developed impressive techniques for natural language processing. During his time as a student, Liu created a cutting-edge X-ray laser, and his innovative mathematical concepts have directly influenced the algorithms used by Eigen to extract and interpret language.
Although the term “generative AI” may not be used by Eigen, its no-code tools effectively summarize and derive meaning from lengthy, often unstructured documents. Eigen has built its own dataset and intelligence engine to support these tools, which cater to non-technical users—no data science expertise is required. Common applications include enhanced search functionalities, insights generation, summaries, and compliance checks.
To date, Eigen has raised over $80 million, with its most recent known valuation recorded in 2019 after a $37 million funding round that put its worth around $170 million. Notable investors include Goldman Sachs and Dawn Capital.
Before this acquisition, Dr. Liu indicated that Eigen had "several offers on the table," suggesting possible pressures as the company neared the end of its financial runway. Despite receiving other acquisition and funding proposals, Eigen's robust client roster, which includes numerous major banks and corporations, positioned it well in this strategic move.
Navigating the current economic climate can be challenging for startups, especially in the AI domain where funding conditions are tightening. Still, it appears Sirion represented the most appealing option for Eigen.
Dr. Liu noted that both companies had previously partnered on multiple business initiatives due to the evolving IT purchasing habits of enterprises that revealed a shared vision. Liu will step into the role of Chief AI Officer and lead a new office in London.
Sirion Labs, originally founded in India, specializes in the application of AI for contract lifecycle management, incorporating conversational queries to extract information seamlessly. Their technology facilitates understanding contract terms, calculating total contract value, and identifying potential loopholes. Additionally, Sirion develops custom solutions and small language models while integrating with larger foundational language models.
Sirion's recent Series D funding round initially targeted $85 million but ultimately closed at $110 million, backed by investors like Peak XV (formerly Sequoia India) and Tiger Global. It has been confirmed that Sirion's valuation has reached around $1 billion, a figure previously unannounced. The company currently manages over 7 million contracts worth $800 billion and collaborates with more than 250 major enterprises.
While Sirion is not yet profitable, it has one to two years of runway left, depending on its growth strategy. As CEO Ajay Agrawal emphasized in an interview, they are actively exploring "tech-led" acquisitions rather than merely expanding their customer base.
Agrawal believes the next 18 to 24 months will see consolidation within the sector, as various horizontal opportunities for AI emerge. “We will be talking,” he remarked.
Moreover, the potential for upstream mergers and acquisitions exists as larger system-of-record players look to enhance their portfolios. Partnerships are already forming, with companies like SAP collaborating with Icertis and Salesforce with Ironclad. Similar alliances may culminate in mergers as the consolidation trend continues. Keep an eye on this evolving landscape.
Ranking
