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SleekFlow Secures $7 Million in Funding to Expand in Asian and Global Markets
Introduction to SleekFlow SleekFlow, a social commerce platform based in Singapore and Hong Kong, announced on Wednesday that it has secured an additional $7 million in funding. This investment will be used to enhance its AI capabilities and expand further into Southeast Asia, the Middle East, and Europe.
The Rise of Social Commerce
The platform’s recent fundraising and expansion plans highlight the growing trend of social commerce. This emerging market allows sellers to utilize social media platforms like Facebook, Instagram, WhatsApp, TikTok, and YouTube for marketing and customer acquisition. Consumers, in turn, are increasingly using these platforms to discover and purchase products. Social commerce is outpacing traditional e-commerce, with the Asia-Pacific region’s market value expected to surpass $894 million by 2028, reflecting a 10.6% growth rate from 2022.
Conversational AI’s Role in Social Commerce
Conversational AI is a significant driver in the development of social commerce. AI-powered chat functionalities enable sellers to manage customer interactions at scale while maintaining efficient operations. The technology also offers valuable insights through analytics and automates various responses tailored to different audiences. The conversational AI industry is expected to reach $49.9 billion by 2030, growing 24.9% from $13.2 billion in 2024.
Competition in the Conversational AI Space
The conversational AI market is highly competitive, with SleekFlow facing rivals such as Messagebird, Respond.io, Gupshup, Omnichat, Trengo, WATI, Unifonic, and Verloop. However, SleekFlow differentiates itself with streamlined features like omnichannel capabilities, marketing automation, and a user-friendly flow builder. Its platform also includes in-chat payment options, collaborative team features, and integrations with CRM platforms like HubSpot and SalesForce.
Expansion Plans and New Leadership
SleekFlow plans to expand its platform to offer fully automated sales and support journeys across voice, calls, and email, aiming to provide unmatched value to its customers. The company recently appointed Gao Lei, a Silicon Valley veteran with over 20 years of experience in AI and big data, as its new CTO. His leadership has significantly boosted the company’s engineering efforts.
Business Model and Market Presence
SleekFlow operates on a multi-tier SaaS business model, with optional add-ons for customers needing a WhatsApp Business messaging channel. The platform is popular among sales and marketing teams and is used by businesses across various sectors, including insurance, healthcare, telecom, and retail. Notable clients include Hong Kong Broadband Networks, Delonghi, Cellini, and Malaysia’s Khind.
Geographical Expansion and Market Potential
Currently active in Singapore, Hong Kong, Malaysia, Indonesia, Brazil, and the UAE, SleekFlow sees significant growth potential in markets like Indonesia, which is expected to become one of the largest consumer markets by 2030. High spending power in Saudi Arabia and the UAE also makes these regions crucial for the growth of social commerce.
Funding and Financial Performance
The latest funding round was led by Atinum Investment, a Seoul-based VC firm, with participation from existing investors AEF Greater Bay Area Fund and Transcend Capital Partners, as well as Moses Tsang, a former Goldman Sachs partner. SleekFlow has raised a total of $15 million to date. The company reported an increase in annual recurring revenue (ARR) from $1-2 million in December 2022 to $8-9 million in June 2024. Its workforce has grown from 60 to 160 employees, and its customer base has expanded to over 5,000 globally.
