We are excited to announce that Parloa has raised a $120M Series C, at a $1B valuation. We’re thrilled to double down on the investment, further underlining our deep conviction in the team’s vision to redefine customer service through AI. 

The Series C – led by our friends Henry Ellenbogen at Durable Capital Partners, Altimeter (who led the Series B) and General Catalyst – is an important milestone in Parloa’s journey to becoming the leading agentic AI platform for customer service and experience. And yet we are still in the early stages of this journey, with an enormous growth trajectory ahead.

We first met Parloa in the fall of 2022 and partnered together in the spring of 2023 at Series A. At the time, we published a blog post that laid out our thesis. Customer service is an enormous ($500B+) market, ripe for disruption, in which conversational AI can cut costs and dramatically improve the customer experience. Today, our conviction has only strengthened. Parloa continues to surpass our expectations in building a best-in-class product, and is emerging as one of the category leaders to capture this vast market. 

Behind these accomplishments are two deeply mission-driven founders, Malte Kosub and Stefan Ostwald. They bring a unique combination of industry experience (having been building customer service software since 2018), technical insight, and pure execution.

A new paradigm in customer experience

Customer service is undergoing a radical, overdue transformation – and is one of the first large markets to be truly transformed by AI. Historically plagued by long wait times, frustrated end-customers, and a high degree of churn among human agents themselves, the industry has struggled to reconcile the need for operational efficiency with rising expectations for personalized and seamless interactions. AI offers a solution to this impasse.

Parloa stands out as a leader that has built a voice-centric, truly enterprise-grade AI solution, tailored to the complex workflows and regulatory needs of customer service operations. Their platform enables businesses to rapidly automate a wide range of customer interactions – while maintaining the contextual understanding, adaptability, and emotional intelligence that define excellent service. This is a paradigm shift from legacy IVRs and rule-based chatbots—and one that’s already delivering tangible ROI for some of the world’s largest enterprises.

From early product-market-fit to emerging leader

In just two years since our initial investment, Parloa has made remarkable strides:

• Product Evolution: Parloa’s product has evolved into a fully agentic platform, enabling enterprises to deploy and scale a team of highly skilled autonomous agents. As a result, customer experience itself is being transformed: it is now possible to deliver a personalised agent for every customer, not simply handle an enquiry or take an order. Parloa’s assistive capabilities, including real-time translation, also help humans deliver value by collaborating with AI.
  
• Enterprise Adoption: Parloa is now deployed across a growing portfolio of marquee enterprise clients in sectors like travel, insurance, utilities, e-commerce, and telecom. By working with a range of channel partners (especially BPOs), Parloa has found a fast and scalable route to Global 2000 boardrooms.
  
• Team Growth: The company has scaled its team with top-tier talent across functions – not least the CTO, Alexander Matthey, who was previously Adyen’s CTO and scaled their global team of engineers, developers, and data scientists from 250 to 1500.
  
• Global Expansion: While the HQ is in Germany, Parloa is now seeing rapid traction globally, particularly with Fortune 500 customers in North Aerica.

Why we’re doubling down

At Mosaic, we invest in hugely ambitious founders who are shaping the future with technology – and Parloa is the perfect example. Here are a few reasons why we’re excited to double down:

1. Huge TAM: Customer service is a $500B+ global industry – and most of that spend is labour, rather than software. Automating even a fraction of these human workflows through AI unlocks enormous economic value.
2. AI tailwinds: With advances in large language models, speech synthesis, and intent recognition, the capabilities of voice-based AI have improved dramatically. Businesses have quickly seen the value that this can deliver, and Parloa is at the forefront of applying these technologies in the enterprise.
3. Outlier execution: The team has demonstrated its ability to land and expand large enterprise contracts, deliver measurable ROI, and build a scalable GTM engine (both direct and via channel partners). We have seen few teams achieve this level of commercial maturity in this little time.
4. Deep moats: Parloa’s deep integration into clients’ customer service infrastructure, vertical-specific modules, and multilingual capabilities provide a strong competitive moat as they scale.

The road ahead

When we first invested in Parloa, we wrote that they had “the potential to make outstanding customer experiences accessible to everyone” That future is no longer a distant vision. It is arriving even faster than we anticipated, and Parloa is at the forefront.

Yet this is just the beginning. As generative AI becomes a core part of every company’s tech stack, we believe Parloa is uniquely positioned to become the central operating system for AI-powered customer engagement.

We are proud to continue this journey alongside Malte, Stefan, Alex, and the entire team. Congratulations to Parloa on this huge milestone!

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