Malaysia's Respond.io raises $62.5M to expand B2C messaging platform globally

Kuala Lumpur-based customer conversation platform Respond.io raised $62.5 million in a Series B funding round on Monday, aiming to fund international acquisitions and expand its AI-agent capabilities. The round was led by Camber Partners, with participation from Endeavor Catalyst and existing investors, bringing a significant capital injection to one of Malaysia's fastest-growing enterprise software startups.

The company, which helps mid-to-large business-to-consumer (B2C) companies manage customer interactions across messaging apps like WhatsApp, TikTok, and WeChat, reported reaching $35 million in annual recurring revenue (ARR). According to financial details shared by the company, Respond.io is growing at 169 percent year-over-year while maintaining a 30 percent profit margin.

Shift to AI agents and conversation-based pricing

Respond.io uses specialized AI agents to automatically handle high volumes of customer inquiries. This automation allows businesses to scale their support operations without linearly increasing headcount. Unlike traditional customer relationship management systems that charge per user seat, the company employs a conversation-based pricing model.

This pricing structure aligns costs directly with actual customer engagement. A report on the funding highlights how this approach appeals to high-volume B2C merchants. By charging per conversation, the platform ensures that businesses only pay for the value they receive rather than paying for idle software licenses.

The integration of AI agents further optimizes these costs. These agents resolve routine queries instantly, leaving complex issues for human agents. This hybrid workflow helps businesses maintain fast response times across multiple time zones.

Financial growth and acquisition strategy

The $62.5 million Series B round represents a massive step up from the company's previous financing. Respond.io last raised a $7 million Series A round in 2022. The new capital will be heavily directed toward strategic acquisitions.

According to figures disclosed, the startup is actively eyeing acquisition targets in North America and Europe. These acquisitions are intended to accelerate the company's market penetration in Western economies, where demand for consolidated B2C messaging solutions is growing rapidly.

Maintaining a 30 percent profit margin while growing ARR at 169 percent year-over-year has positioned the company as a highly capital-efficient player. This financial health gave the founders leverage when negotiating the Series B terms with San Francisco-based Camber Partners.

Company origins and relocation to Malaysia

Co-founder and CEO Gerardo Salandra, who previously worked at IBM and Google, established Respond.io in Hong Kong in 2017. He co-founded the business alongside Chief Technology Officer Hassan Ahmed and Chief Operating Officer Iaroslav Kudritskiy. Salandra previously gained experience at Runtastic, a fitness app acquired by Adidas in 2015.

The founding team relocated the business to Kuala Lumpur, Malaysia, in 2019. The move allowed the company to tap into Southeast Asia's rapidly developing tech ecosystem and access a diverse, multilingual talent pool. This relocation proved highly influential as the company scaled its operations across the Asia-Pacific region.

The original goal in 2017 was simple: solve the communication gap for businesses. Consumers had rapidly migrated to instant messaging apps, but corporate support teams remained stuck using traditional email and phone systems. Respond.io bridged this gap by unifying these disparate channels.

Expanding messaging channel integrations

The platform now helps mid- to large-sized B2C businesses drive revenue from customer conversations across a wide array of messaging channels. Supported networks include WhatsApp, Instagram, TikTok, Messenger, Line, Telegram, and WeChat.

In addition to social messaging apps, the software integrates traditional voice calls and web chat. By consolidating these channels into a single, unified inbox, Respond.io prevents customer inquiries from slipping through the cracks. The platform's software-as-a-service model has found strong adoption among enterprises managing thousands of daily chats.

With the new funding, the company plans to deepen these integrations. It aims to add more advanced telemetry and analytics tools, allowing marketing teams to attribute sales directly to specific messaging conversations.