Cairo- and Dubai-based startup DXwand has secured $4 million in Series A funding to enhance its conversational AI platform. Led by Shorooq Partners and Algebra Ventures, the investment will support the company’s expansion in the MENA region. DXwand, founded by former Microsoft employee Ahmed Mahmoud, focuses on automating customer service and employee assistance for businesses in the Middle East. The funding will also drive research and development efforts in generative AI, knowledge mining, and omnichannel conversational AI within the region. DXwand initially provided small businesses with customer-centric chatbots tailored for social media sales before transitioning its business model for broader market appeal.
Egypt-born AI startup DXwand underwent a pivotal shift in 2021, redirecting its focus from small businesses to corporates and enterprises. The company embraced knowledge mining and retrieval augmented generation (RAG) domains, aiming to eliminate manual data labeling through the creation of a knowledge graph. This approach facilitates faster client onboarding and supports sophisticated use cases. DXwand’s AI-powered software automates text and voice conversations across various platforms, including call centers, Facebook Messenger, WhatsApp, SMS, and websites. The platform claims to comprehend slang in Arabic and English, extracting insights for businesses and enhancing customer retention and acquisition. DXwand secured additional investments between 2021 and 2022, totaling $2.3 million, to accelerate its investments in knowledge mining and expand its reach in Africa and Europe. The startup now leverages language-agnostic solutions to cater to a broader clientele.
DXwand, with a thriving presence across diverse sectors in the MENA region, is set for expansive growth fueled by its recent $4 million Series A funding. The AI startup, catering to over 40 clients, has facilitated over 5 million conversations, achieving profitability. With a subscription-based revenue model ranging from $50,000 to $400,000, the company recorded over $5 million in annual recurring revenues in 2023, reflecting a substantial 2x year-over-year growth. DXwand plans to utilize the funding to expand into Africa and Saudi Arabia, recognizing the strategic importance of these regions. Research advancements in knowledge mining and retrieval augmented generation, along with strategic partnerships with telecom operators, are key elements in DXwand’s roadmap for sustained success.