Malaysia's AI agent-powered messaging app Respond.io raises $62.5M, eyes acquisitions | TechCrunch
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Image Credits: Respond.io
AI
Malaysia’s AI agent-powered messaging app Respond.io raises $62.5M, eyes acquisitions
Kate Park
11:59 PM PDT · June 15, 2026
In 2017, Respond.io set out to solve a simple problem: Businesses couldn’t keep up with customers who had moved to messaging apps. Today, Respond, with its customer conversation management software, has become one of the tech success stories of Malaysia.
The startup, headquartered in Kuala Lumpur, has raised a $62.5 million Series B round led by Camber Partners, with participation from Endeavor Catalyst and existing investors. It last raised a $7 million Series A in 2022. The company has grown to $35 million in annual recurring revenue (ARR), growing 169% year-over-year, at a 30% profit margin, it tells TechCrunch.
Co-founder and CEO Gerardo Salandra, who worked at IBM and Google before joining Runtastic, a fitness tracking app that was sold to Adidas in 2015, founded Respond in Hong Kong in 2017 alongside Hassan Ahmed (CTO) and Iaroslav Kudritskiy (COO). The team relocated the business to Malaysia two years later.
The platform helps mid- to large-sized B2C businesses drive revenue from customer conversations across multiple messaging channels, including WhatsApp, Instagram, TikTok, Messenger, Line, Telegram, WeChat, voice calls, and web chat. It also uses AI agents to automatically handle high volumes of customer inquiries, qualify leads, and close sales without human intervention.
Salandra described its core customers as "high-consideration" businesses, where customers need to talk to someone before buying, such as healthcare, automotive, retail, education, and travel. "You don’t go to a website, put your credit card, and buy a car; you chat with someone, you ask a lot of questions," he said. Its sweet spot is companies with 200 to 10,000 employees.
The rise of AI has raised an obvious question for platforms like Respond: Can tools like ChatGPT simply replace what they’ve built?
Salandra thinks his foothold is strong enough to stop such encroachment, should it come. The company is currently processing 2 billion messages per quarter.
"If I just look at the numbers, every day that AI becomes more prominent, we grow faster," he told TechCrunch. "We are not seeing what the public SaaS markets are seeing."
Part of that comes down to pricing, he said. Unlike enterprise software competitors that charge per seat, Respond charges based on the volume of customer conversations, meaning it doesn’t matter whether a human or an AI is answering. "When fewer humans use your product, they make less money," he said. "But we don’t charge like that."
The incumbent platforms, particularly those dominant in North America and Europe, were built around email and phone calls. "The platforms that exist, they bolted on messaging as a second thought. They’re very email focused, they’re very call focused, but when it comes to messaging, it’s an afterthought," Salandra said.
That volume of message data creates a feedback loop, according to the CEO. More messages mean better AI. Better AI attracts more customers. More customers generate more messages. "This is what we call the data flywheel," Salandra said. He added that the head start matters for any upstart AI company, as well. "Because we started so long ago and we have such a strong foundation, we can provide better AI compared to someone who just entered into the messaging space."
With the new capital, Salandra said the company plans to pursue hiring, organic growth, and acquisitions. The CEO has two types of buying targets in mind: bolt-on technology that fits into its existing ecosystem, and established teams with strong customer bases in strategic markets like Europe and North America. "Imagine how many months I can save if I find the right company that maybe already has the clients and the team," he said. "I can save myself six months to a year through an acquisition." He confirmed the company is already in talks with a couple of potential targets.
The geographic push makes strategic sense. Respond currently generates roughly 30% of its revenue from APAC, 30% from Latin America, and 20% from the Middle East and Africa, leaving North America and Western Europe at just 20%. But Salandra says those regions are now its fastest-growing. "They took longer to make the...