Artificial intelligence (AI)-powered customer service platform Cue has secured a $5 million (R82 million) primary funding round, co-led by Knife Capital and FAM Investments.
The funding will support product development, international expansion and deeper investment in voice, security and enterprise integrations, according to a statement.
Cape Town-headquartered Cue says it powers customer conversations for more than 500 companies across the UK and South Africa, spanning automotive, retail, insurance, finance and education. It now handles more than 500 million messages and conversations annually across its platform.
It further states that average recurring revenue grew by more than 160% year-on-year in its latest financial year.
As a result, the firm is building its second generation of AI agents to resolve customer service issues end-to-end, it states. When human support is still needed, the platform hands over to Cue’s unified inbox and ticketing desk, with full context, for high-value intervention.
“It’s an exciting time of transformation for the company,” adds Richard Nischk, CEO of Cue. “We’re at an inflection point for AI in customer service, and we see more businesses starting to realise that they need a unified platform to succeed, not a patchwork of point solutions.”
According to the statement, Cue’s first-generation agents can already resolve over 60% of customer conversations autonomously.
The next iteration aims to execute complex tasks across different systems, such as qualifying leads and adding them to CRMs, checking order status, booking appointments, handling student applications and sending payment links.
Over the years, South African venture capitalist firm Knife Capital has continued focusing on innovation-driven ventures. The firm invests via a consortium of funding partnerships.
The latest primary funding round in Cue marks another step in its start-up investment in Africa.
Keet van Zyl, founding partner of Knife Capital, comments:“Customer service remains the lifeblood of every enduring business. As AI reshapes enterprise software, the winners will be companies that enhance human capability rather than replace it.
“Cue has built a platform that delivers measurable value today, led by a team with the vision, technical depth and execution ability to be a category leader. That’s exactly the type of business Knife Capital looks to back.”
Nischk concludes: “Our growth strategy reflects exactly what our clients are asking for: an all-in-one AI powered customer service platform that delivers value and best in class service, across every channel.”
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