Yoodli, an AI-driven communication training firm, has achieved a valuation surpassing $300 million, a figure more than three times its value from half a year prior. This growth is attributed to its focus on developing AI technology designed to augment human capabilities rather than automate them.
This significant valuation jump comes on the heels of Yoodli securing $40 million in its Series B funding round, spearheaded by WestBridge Capital, with additional investments from Neotribe and Madrona. This recent investment, combined with its $13.7 million Series A round disclosed in May, brings the company’s total capital raised to almost $60 million.
In contrast to the widespread adoption of AI tools in professional settings that often raise concerns about job displacement, Yoodli distinguishes itself. The Seattle-based startup, founded four years ago, leverages AI to create simulated environments for various communication scenarios, such as sales pitches, leadership development, job interviews, and performance feedback, offering users systematic and recurrent practice to enhance their verbal communication abilities.
Varun Puri (pictured above, right), an alumnus of Google’s X division where he managed special initiatives for Sergey Brin, established Yoodli in 2021 alongside Esha Joshi (pictured above, left), a former Apple engineer. Puri shared in an interview that his understanding of communication difficulties emerged after relocating to the U.S. at 18, observing the impact of struggles with idea articulation and confident speaking on students and young professionals, including himself, from nations like India.
Initially, Yoodli’s purpose was to aid individuals in practicing public speaking, a challenge for two out of three people according to Puri, citing internal company data. Yet, the startup quickly noticed users also utilizing the platform for preparing for interviews, sales presentations, and challenging discussions. This evolution transformed Yoodli from a consumer-oriented service into an enterprise training solution, now delivering AI-powered role-plays and hands-on learning resources for market entry strategies, partner accreditation, and leadership development.
Puri commented, “Historically, companies relied on static, extensive content or passive video training, which many of us would fast-forward through simply to complete the task. However, this approach doesn’t genuinely equate to actual learning.”
Prominent companies like Google, Snowflake, Databricks, RingCentral, and Sandler Sales employ Yoodli for training their employees or partners. Additionally, the startup markets its platform to coaching organizations such as Franklin Covey and LHH, allowing them to customize the system to align with their specific methodologies and training structures, as Puri explained. He further emphasized that the tool serves to augment human coaches, ensuring personalized guidance remains integral to the process, rather than replacing them.
Puri articulated his belief, stating, “Philosophically, I think AI can advance you significantly, perhaps from a starting point to an advanced level, say an eight or nine out of ten. Nevertheless, the fundamental aspects of your identity, your presentation, and the authenticity and vulnerability that human feedback provides will forever remain irreplaceable.”
The platform is compatible with various large language models, enabling users to operate it with options like Google’s Gemini or OpenAI’s GPT, according to their choice. Businesses have the option to integrate it into their current software, or individuals can access it directly via a web browser. The AI is equipped to support a wide range of major languages, including Korean, Japanese, French, Canadian French, and several Indian languages.
Yoodli intentionally refrains from providing a dedicated mobile application; Puri stated this choice was made to streamline the user experience during training sessions and eliminate unnecessary steps.
While Puri did not reveal the exact user count, he affirmed that enterprise clients now contribute the majority of Yoodli’s revenue. He further noted that in the period between its Series A and B funding rounds, the platform experienced a 50% surge in both the quantity of role-plays conducted and the overall practice time logged by users. The startup also reported an impressive 900% growth in its average recurring revenue over the past year, though precise financial data was not disclosed.
Puri explained that Yoodli hadn’t initially intended to pursue additional funding so soon after its previous round, but encountered unexpected investor enthusiasm, culminating in WestBridge heading the most recent capital raise. He attributed this investor interest to robust performance indicators, a strong client base, and strategic senior leadership appointments. Recently, the startup brought on Josh Vitello, formerly an executive at Tableau and Salesforce, as its Chief Revenue Officer; Andy Larson, previously CFO at Remitly, as its Chief Financial Officer; and Padmashree Koneti, former Chief Product Officer at Tableau, as its Chief Product Officer.
Though Yoodli operates within a competitive landscape of AI-powered communication tools, Puri informed TechCrunch that the startup distinguishes itself through extensive customization capabilities and a targeted approach to specific training domains. This allows organizations to adapt the system precisely to their particular use cases and coaching strategies.
The Seattle-based startup currently employs approximately 40 individuals. Puri indicated that the newly acquired funding will be allocated towards enhancing Yoodli’s AI coaching, analytical, and personalization features, as well as broadening its reach in enterprise learning and professional development sectors. Furthermore, the company intends to recruit personnel for product development, AI research, and customer success roles, and to penetrate Asia-Pacific markets while simultaneously strengthening its presence within the U.S.