ComeChat Bags Funding To Help Companies With Real-Time User Engagement

SUMMARY

CometChat to use funding for scaling product offerings, strengthen presence in Europe and expand data centres in the APAC region

Including the current fundraise, CometChat has secured more than INR 145 Cr to date

The Mumbai-based startup’s CPaaS offerings include SDKs and APIs, open sourced UI kits and widgets

User engagement startup CometChat has secured INR 40 Cr ($4.8 Mn) in a debt funding round led by Utah-based Zions Venture Fund.

CometChat will use the funding for scaling product offerings, strengthen presence in Europe and expand data centres in the APAC region.

Including the current funding, CometChat has secured more than INR 145 Cr to date.

CometChat, founded in 2010 by brothers Anuj and Anant Garg, primarily helps organisations to quickly integrate text, chat, video and voice communications into their websites and mobile applications.

“Zions is thrilled to be partnering with CometChat for this debt facility. We have been impressed by the team and what they have accomplished to date. Excited to be a part of the journey and support the company through its phases of growth,” said Sam Clark, MD of Zions Venture Fund.

The Mumbai-based startup’s offerings include SDKs and APIs, open sourced UI kits and widgets. Lately, it has also started integrating with ChatGPT. Presently, it is working with varied sectors including marketplaces, community apps, telehealth applications, edtech, internal messaging or enterprise systems.

Explaining its business model, the startup said that it allows companies to get real-time engagement and lead conversations via messaging, voice calling and HD video chat. It also claims to have helped enterprises save hundreds of developer hours and allied costs that companies spend while building tech from the scratch.

“We are a revenue-focused business continuously growing in large international markets. Thus, our business fundamentals and strong balance sheet has enabled us to raise this round as we are in a comfortable position to service the debt. The aim is to raise capital for an extended runway of 5 years as we put our growth plans in the fast lane,” said Anuj Garg, cofounder and CEO of CometChat.

The startup claims to have grown its customer base by 3X and witnessed its product usage growing by 300%.

Its backers include Signal Peak Ventures, TechStars, iSeed, Range Ventures, Silicon Badia, Niels Gron, Ritesh Geera, Matchstick Ventures, Range Ventures and Unbound Ventures, among others.

In India, it competes with the likes Tanla, Route Mobile, AMD Telecom and Netcore Cloud.

As per a Mordor Intelligence report, the global CPaaS market was pegged at $4.54 Bn in 2020. The industry is projected to reach $26.03 Bn by 2026, expanding at a CAGR of 34.3% during the forecasted period.