SleekFlow Secures $7 Million to Expand Conversational AI and Social Commerce Reach
SleekFlow, a social commerce platform based in Singapore and Hong Kong, has announced an additional $7 million in funding aimed at advancing its conversational AI technology and expanding its market presence across Southeast Asia, the Middle East, and Europe.
This funding underscores the burgeoning trend of social commerce, where businesses utilize platforms such as Facebook, Instagram, WhatsApp, TikTok, and YouTube to market their products and engage with new customers. At the same time, consumers rely on these social media channels to discover and purchase items.
Currently, social commerce is experiencing faster growth compared to traditional e-commerce. The Asia Pacific social commerce market is projected to surpass $894 million by 2028, reflecting a robust growth rate of 10.6% from 2022.
Conversational AI plays a crucial role in this evolution. By leveraging AI-driven chat features, businesses can scale their customer support efficiently while keeping operational costs low. This technology also provides valuable analytics that help sellers understand customer behavior, tailoring responses to specific audiences and automating various interactions effectively.
The conversational AI sector is anticipated to reach $49.9 billion by 2030, showing an impressive growth rate of 24.9% from $13.2 billion in 2024. Given the rising demands of both social commerce and e-commerce, competition in the conversational AI landscape is fierce, with SleekFlow facing rivals such as MessageBird, Respond.io, Gupshup, Omnichat, Trengo, WATI, Unifonic, and Verloop.
Henson Tsai, founder and CEO of SleekFlow, emphasizes that the startup differentiates itself through its streamlined features, including omnichannel marketing capabilities, marketing automation, and an intuitive flow builder that allows users to create personalized chat experiences. Instant checkout integrations, in-chat payment options, collaborative team features, and built-in CRM integrations with HubSpot and Salesforce enhance the platform's versatility and functionality.
Tsai shared plans for further platform expansion, stating that offerings for fully automated sales and support via voice calls and emails are in development to provide unparalleled customer value.
Recently, SleekFlow appointed Gao Lei as its new Chief Technology Officer. With over two decades of experience in AI and big data within Silicon Valley, Gao's leadership significantly boosts SleekFlow's engineering initiatives, keeping the company at the forefront of innovative technology.
SleekFlow operates on a multi-tier SaaS business model, offering an optional add-on for those looking to establish a WhatsApp Business messaging channel. Its services cater to sales and marketing teams of all sizes, with clients spanning diverse industries, including insurance, healthcare, telecom, and retail. Notable customers include Hong Kong Broadband Network (HKBN), Delonghi, online furniture retailer Cellini, and Malaysian appliance manufacturer Khind.
Currently, SleekFlow's services are active in Singapore, Hong Kong, Malaysia, Indonesia, Brazil, and the United Arab Emirates. Tsai notes that consumer behavior is rapidly shifting toward online shopping in Indonesia, projected to become one of the largest consumer markets by 2030. The high purchasing power in Saudi Arabia and the UAE also signals promising opportunities for social commerce growth in those regions.
The latest funding round was led by Atinum Investment, a venture capital firm from Seoul, with participation from existing investors AEF Greater Bay Area Fund and Transcend Capital Partners, along with Moses Tsang, former general partner of Goldman Sachs and chairman of Goldman Sachs Asia LLC. To date, SleekFlow has raised a total of $15 million, including an earlier $8 million Series A round led by Tiger Global.
While the company hasn't disclosed its valuation, other metrics show significant growth: its annual recurring revenue (ARR) surged to $8 million to $9 million as of June 2024 from merely $1 million to $2 million in December 2022. Additionally, its workforce expanded from 60 to 160 employees, and its global customer base increased by over 5,000, according to Tsai.
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