DXwand, an Omnichannel conversational and digital assistants platform, announced the close of its preSeries A investment round. The round was led by Huashan Capital with commitments of Mr Mohsen Baker and Mr Ahmed Bakeer as angel investors. US-based VC firm SOSV, the earliest investor in DXwand’s seed round, has also supported the due diligence and syndication of this fundraising round as part of its strong belief in the company’s success.
“Conversational interfaces are the future of user engagement and we think that the DXwand team is very well positioned thanks to their proprietary Arabic dialects NLP and personalized recommendations engines that set them apart from the rest of the competitors. DXwand was one of the first investments for SOSV in MENA; the positive experience led to more than a dozen investments in the region,” Says Oscar Ramos, SOSV General Partner.
“What we liked about DXwand was that it provided a clear quantifiable value proposition to its clients – reducing customer service time by 70%, greatly reducing the manpower needed, and driving up to 3 times higher customer engagement,” said David Chen, of Shanghai-based Huashan Capital. “We’re very proud to invest in the DXwand team. Their success and growth so far is a testament to the quality of their products. AI-powered customer services are blossoming across the globe in every customer-facing interaction, and we’re looking forward to supporting DXwand’s efforts to expand into the whole MENA region,” Chen added.
DXwand is an AI-driven software that automates text, voice, and video conversations between customers, businesses, and Facebook Messenger, WhatsApp, and other platforms such as SMS and call centres. Their conversational AI tool is able to understand both Arabic and English slang and extract insights from conversations. Businesses can then use these insights to make quick, informed decisions. The company’s analytical platform and dashboards provide deep business insight that support business growth. They transform conversations into leads and sales, with a focus of customer retention and acquisition.
DXwand will use this investment to grow its business in the region, increase its market share, and to speed up its AI research to differentiate itself from its competitors. “We’re most grateful to our investors for their continuous support and trust in us,” said Ahmed Mahmoud, Founder and CEO at DXwand. “With gaining more trust from various stakeholders to lead the AI services industry in MENA, and having been achieving 11X year-over-year growth, we look forward to propelling this success even more in the coming period.”
He added, “We can’t forget where all this had started. Egypt’s Information Technology Industry Development Agency was genuinely kind to us. They invited us to Hangout with VCs, which led to us meeting SOSV and other international investors in this round. It was the most impactful matchmaking event I attended in Egypt.”
“I’m thrilled to see DXwand secure its second investment deal with investors they met last year during our Hangout with VCs event. This is part of ITIDA’s mandate to attract more VCs to the ecosystem in Egypt to help more companies to scale and accelerate their revenue growth,” ITIDA’s CEO, Amr Mahfouz commented.
“It’s an exciting time for the entrepreneurship sector in Egypt as global VCs are not only keeping an eye on Egyptian startups but are also investing large amounts of money helping us realize our targets and achieve tremendous year-on-year (YoY) growth,” Mahfouz stated.
“Despite the unprecedented challenges posed by the multi-crisis context, many opportunities emerge where we’ll spare no effort to carve them out, extend our support to the entrepreneurship ecosystem, and position Egypt as a leading technology hub for both offshoring businesses and innovative startups,” ITIDA’s CEO added.