Egyptian startup, Tactful AI raises $1M pre-series A to improve service

Egyptian startup Tactful AI has secured $1 million in a pre-Series A funding round to expand its AI-powered customer service platform. The round was co-led by Foras AI and M Empire, with additional contributions from deep-tech angel investors as well as the company’s founders, Mohamed Elmasry and Mohamed Hassan.

Founded in 2016, Tactful AI helps businesses to enhance their operations beyond basic automation. It uses agentic AI software that manages customer requests from start to finish within set limits. This enables companies to resolve issues promptly and effectively.

The funding will enhance the startup’s presence in Egypt, facilitate expansion into Europe, the Middle East, and Africa (EMEA), and bolster research and development (R&D) to enhance AI capabilities, scalability, and integrations.

In the past year, Tactful AI’s user base has grown by over 100 times, according to the company. It works with enterprise clients in retail, fintech, logistics, and consumer services. Current clients include Elaraby Group, Raneen, Lucky App, valU, and Bosta.

How Tactful AI plans to provide smarter customer service

Customer experience is becoming a crucial factor for businesses. Companies need to respond quickly, personalise their interactions, and improve their operations without making things more complicated.

Tactful AI helps with this by turning customer data into actionable insights. It empowers teams and allows AI to manage requests from start to finish. This reduces response times and lessens the workload on human agents.

The company plans to use the raised funds to strengthen its leadership in the Egyptian market, explore new markets in Europe, the Middle East, and Africa, and invest significantly in research and development.

It has already spent $5 million on R&D and plans to double that investment over the next three years. They are also preparing to raise a larger funding round, called Series A, within the next year.

Investors are impressed by Tactful AI’s combination of rapid growth, enterprise adoption, and hands-on approach to AI deployment. “Tactful AI shows how advanced AI can be applied practically to improve real customer experience,” said Mohamed Aboulnaga, General Partner at Foras AI.

Maged Ghoniema of M Empire stated that the startup’s emphasis on speed, adaptability, and intelligent execution positions it as a leading candidate to shape the next generation of CX platforms in the region.

With this funding, Tactful AI plans to expand its reach, enhance its AI engine, and continue assisting businesses in providing smarter, faster, and more efficient customer service across various sectors.

Also read: Nigerian-owned Zance launches AI platform to track ROI of events, targets Q1 funding

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