Yoodli, an AI communication training startup, has seen its valuation exceed $300 million, a threefold increase in just six months, as it develops AI solutions designed to augment human capabilities rather than substitute them.
This valuation surge follows a $40 million Series B funding round, spearheaded by WestBridge Capital with contributions from Neotribe and Madrona. This round comes on the heels of a $13.7 million Series A round announced in May, accumulating nearly $60 million in total funding for the startup.
In contrast to the rising concerns about automation as AI tools become more prevalent in professional settings, Yoodli has carved out a distinct niche. The Seattle-based company, founded four years ago, leverages AI to create simulated environments for various communication scenarios, such as sales calls, leadership development, job interviews, and feedback exchanges, offering users structured and consistent practice to refine their speaking abilities.
Varun Puri (pictured above, right), formerly with Google’s X division and special projects for Sergey Brin, co-founded Yoodli in 2021 alongside ex-Apple engineer Esha Joshi (pictured above, left). Puri explained in an interview that his awareness of communication hurdles stemmed from his experience moving to the U.S. at 18, observing how students and young professionals from countries like India, including himself, struggled with articulating thoughts and speaking with assurance.
Puri informed TechCrunch that Yoodli’s initial objective was to aid individuals in practicing public speaking, a challenge for two-thirds of the population according to internal data. Yet, the platform’s users quickly began utilizing it for preparing for interviews, sales presentations, and challenging discussions. This evolution led Yoodli to pivot from a consumer-oriented service to enterprise training, now delivering AI-powered role-playing and experiential learning tools for go-to-market strategies, partner accreditation, and leadership coaching.
“Historically, corporate training involved static, lengthy materials or passive video content, which many would fast-forward through simply to complete the task,” Puri commented. “However, this approach doesn’t genuinely facilitate learning.”
Prominent companies like Google, Snowflake, Databricks, RingCentral, and Sandler Sales employ Yoodli for their employee and partner training programs. Puri mentioned that the startup also markets its platform to coaching organizations such as Franklin Covey and LHH, enabling them to customize the system to align with their specific methodologies and training structures. He emphasized that the tool serves to complement human coaches, ensuring ongoing personalized human guidance.
Puri articulated, “My philosophical stance is that AI can advance one significantly, perhaps from a foundational level to an advanced one. However, the core of one’s identity, presence, authenticity, and vulnerability, which human feedback addresses, will always remain crucial.”
The platform is compatible with various large language models, allowing users to operate it with choices like Google’s Gemini or OpenAI’s GPT, according to their preference. Businesses can integrate it into their current software environments, or users may access it directly via a web browser. The AI is equipped to support most primary languages, including Korean, Japanese, French, Canadian French, and several Indian languages.
Puri explained that Yoodli intentionally does not provide a dedicated mobile application to streamline the user experience during training sessions and minimize additional steps.
While Puri refrained from disclosing user numbers, he indicated that enterprise clients now account for the majority of Yoodli’s revenue. He further noted that between its Series A and B funding rounds, the platform experienced a 50% surge in both the number of role-plays conducted and the cumulative practice time logged by users. The startup also reported a remarkable 900% growth in its average recurring revenue over the past year, though precise figures were not released.
Puri stated that Yoodli had not initially intended to secure additional funding so soon after its previous round, but encountered unexpected investor enthusiasm, with WestBridge spearheading the recent investment. He attributed this investor appeal to robust performance metrics, significant customer acquisitions, and strategic senior hires. Recently, the startup brought on Josh Vitello, formerly an executive at Tableau and Salesforce, as Chief Revenue Officer (CRO); Andy Larson, former CFO of Remitly, as Chief Financial Officer (CFO); and Padmashree Koneti, ex-Chief Product Officer (CPO) at Tableau, as CPO.
While Yoodli operates within a competitive landscape of AI-driven communication solutions, Puri conveyed to TechCrunch that the startup distinguishes itself through extensive customization options and a specialized focus on particular training sectors. This approach enables businesses to adapt the system precisely to their unique requirements and coaching methodologies.
The Seattle-based startup currently employs approximately 40 individuals. Puri indicated that the newly acquired funds would be allocated toward enhancing Yoodli’s AI coaching, analytical capabilities, and personalization features, as well as expanding its footprint in the realms of enterprise learning and professional growth. Furthermore, the company intends to recruit staff across its product, AI research, and customer success departments, and to penetrate Asia-Pacific markets while strengthening its presence within the U.S.