SaaS Labs raises $42M for its business automation platform, acquires CallPage and Atolia
SaaS Labs has raised $42 million in a new funding round, less than three months after its previous funding closed, and has acquired two startups as it seeks to aggressively grow its software platform. automation that serves the sales and support teams of small and medium businesses.
Sequoia Capital India led SaaS Labs Series B. Base 10 Partners and Eight Roads Ventures, two existing backers, as well as entrepreneurs Anand Chandrasekaran, Allison Pickens, Michael Stoppelman and Amit Agarwal participated in the round. The new funding follows the California and Noida-based startup’s $18 million Series A raise in October.
For large companies and enterprises, dozens of tools exist to bring more efficiency to their sales and support operations. But this is not the case for small and medium-sized enterprises. This was the learning that Gaurav Sharma left with in his previous company, called HelloSociety, in the United States. (The company was acquired by The New York Times.)
“SMBs are very unloved and underserved if you look at the software offerings they have at their fingertips,” he told TechCrunch in an interview. Businesses, by comparison, “have access to impressive tools to improve their agent productivity,” he said.
For six years, SaaS Labs has created AI-powered tools that are “equally powerful” for empowering small business sales and support teams. These offerings are no-code solutions, eliminating the need for an IT team to deploy it.
“These tools are also very affordable and integrate seamlessly with other business stacks and on-premises hardware solutions that small businesses rely on,” he said.
The challenge facing over 15 million sales and support agents today is that they have to manually update their call logs and CRM tools which are not designed to offer live updates. real time to their managers. This creates a void in their communication channels, where no intervention can occur in real time.
Dashboard from JustCall, a SaaS Labs offering that allows SMBs to set up a cloud-based contact center for sales or support teams in minutes. (Image credits: SaaS Labs)
“Chaos starts to happen when you have a team of five people dealing with customer communication. Thus, these teams can use our offer called JustCall.io, for example, which integrates with more than 100 other professional tools. JustCall, which has a database of over 100 million calls to process, uses machine learning to access call quality and whether the playbook or workflow is being followed. Managers can then only look at the calls that were badly scored instead of trying to sift through each call,” he said.
The startup has more than 6,000 customers worldwide. It typically sees a small business join the platform paying as little as $25 a month and the overtime happily shifts to paying tens of thousands of dollars a year as their business grows.
Today, more than 70% of these customers are based in the United States and 10% in the United Kingdom. Some of its clients include Grab, GoStudent, Booksy, HelloFresh.
The startup, which has been profitable for years, said it grew its revenue 2.5 times last year.
On Thursday it also announced two acquisitions – Poland-based CallPage, a callback automation tool for sales teams to connect instantly with their prospects, and Atolia, based in France, a productivity and collaboration tool. (Their teams will join Saas Labs as full-time employees.) Sharma said the acquisitions help SaaS Labs expand its product offering and deepen its footprint in various markets.
Some of the new funds will be deployed to acquire many more startups, Sharma said.
“While we are well capitalized, this cycle gives us the firepower to double down on what works, hire great talent globally, launch innovative products, focus on brand marketing and get aggressive with strategic mergers and acquisitions.As SMBs continue to adopt software to modernize different functions such as sales, support and marketing etc. within their business, we are confident that SaaS Labs will be able to capture this opportunity and to multiply by 30 over the next 5 to 7 years.
It plans to take SaaS Labs public in the next four to five years, he said.
“SaaS Labs is building a multi-channel customer communication platform for small and medium businesses. Through a suite of products, it delivers an experience that blends the efficiency of digital with the intimacy of offline communication channels,” Tejashwi Sharma, MD at Sequoia Capital India, said in a statement.
“Its flagship product JustCall, for example, was able to have a profound impact. Customers, on average, reported a time savings of 12 hours per week per agent on manual tasks while customer satisfaction improved by 30%. Sequoia Capital India is delighted to partner with Gaurav and the team as they build the future of customer communications,” he added.