AI-based online customer research startup Entropik Tech has raised $8 million in a Series A funding round, which was led by Alpha Wave Incubation, an Abu Dhabi government-backed fund that is managed by US investor Falcon Edge Capital, and Bharat Innovation Fund. IDFC Parampare Fund also participated in the round.
Entropik helps brands better understand their customers through its proprietary emotion AI platform, allowing them to take more actionable insights. The company claims it has been able to deliver a 6X return on investment for its customers, which include the likes of P&G, Barclays, Maersk, Accenture, Target and Mars.
“The first two-and-a-half years, we were very focused on getting our technology right and building a multi-model emotion recognition platform, the first out of India,” said Ranjan Kumar, founder and CEO at Entropik Tech. “Since January 2019, we have been focused on our growth story and getting customers and we have managed to grow our revenues by 11X year-on-year.”
So far, Entropik has signed up a little over 80 enterprises as its customers across various geographies, but plans to utilise this fresh funding to expand deeper into markets such as the US, Europe and Southeast Asia. While its initial set of customers are large enterprises, it says it will also focus on the mid-market in the future.
Entropik Tech was one among the shortlisted startups in the Top Innovator category at the ET Startup Awards 2020.
While also pumping money into improving its existing product, the company said it will also invest in building a truly predictive consumer behaviour model on the back of its human emotion data repository, which it claims is already the second largest in the world.
“It (Entropik) is disrupting the customer experience testing and management space with a heady cocktail of cutting edge technologies including AI, EEG and facial coding and is rapidly emerging as a global leader in the space,” said Ashwin Raguraman, founding partner at Bharat Innovation Fund.
Kumar added that customer interest in Entropik’s solution has grown since the Covid-19 pandemic due to changing customer behaviour that brands are trying to understand, especially retail-focused brands that are now moving online, and also due to an inability to conduct traditional focus group consumer studies due to the pandemic.
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