AI startup Parloa raises $120 million, hits $1 billion valuation

Berlin-based Parloa secures major funding as AI agents reshape the future of customer service.

Stefan Ostwald (left) and Malte Kosub. (c) Parloa GmbH

By Anna Fadiah and Hayu Andini

In a significant leap for artificial intelligence in the customer service space, AI startup Parloa has raised $120 million, bringing its valuation to a remarkable $1 billion. The Berlin-founded company, which specializes in AI-driven customer support solutions, is using this investment to accelerate its expansion across Europe and North America.

Founded in 2018, Parloa has emerged as a leader among a new generation of AI companies aiming to replace traditional customer service tools with intelligent agents that require minimal human supervision. The company's platform enables businesses to build and deploy customizable AI agents capable of managing voice and text-based customer interactions more efficiently than conventional chatbots.

The recent funding round was co-led by Durable Capital Partners, Altimeter Capital, and General Catalyst, all of whom see Parloa’s mission as central to the ongoing transformation of customer service through AI. This $120 million raise follows a previous $66 million round just a year earlier, underscoring rapid investor confidence in the company’s growth potential.

From Berlin to the world: a rising AI force

Parloa’s journey began in Berlin, where co-founders Malte Kosub and his team recognized the untapped potential of artificial intelligence in a vast and often inefficient customer support industry. Now with a growing presence in New York and additional plans for global reach, the company is setting its sights on becoming the go-to AI solution for enterprise-level customer service.

“Customer support is one of the biggest industries in the world, and we saw a lot of potential to bring AI into production in that industry,” said Kosub, who serves as Parloa’s CEO. Unlike older generation chatbots that often frustrate users, Parloa’s platform emphasizes natural language processing and personalized responses, allowing businesses to serve their customers in more human-like ways.

Kosub notes that Parloa isn’t just building another chatbot—it’s building AI agents with depth, capable of navigating complex service scenarios and improving over time through data-driven learning.

The AI agent revolution

The Parloa funding round comes at a time when AI agents are becoming a central focus for enterprise software development. These agents differ from generic tools like large language models because they’re embedded directly into business operations, adhering to strict requirements around compliance, security, and customer data protection.

Apoorv Agrawal, a partner at Altimeter Capital, highlighted these needs in a statement, explaining, “AI agents for enterprises need a lot of security, compliance, and data privacy ingrained into how they are built. AI is transforming the way businesses connect with their customers, and Parloa is at the forefront of that shift.”

One area Parloa is particularly targeting is voice-based interaction, a feature that remains a cornerstone of customer service in many industries. With Parloa, customers can interact over the phone or through chat interfaces, creating a seamless, omnichannel support experience.

A competitive and crowded field

While Parloa’s valuation milestone is noteworthy, it arrives amid intensifying competition in the AI agent market. One of the most prominent contenders is Sierra Technologies Inc., a startup co-founded by OpenAI Chairman Bret Taylor, which reportedly raised funds at a $4.5 billion valuation. This underscores just how hot the AI-driven customer service sector has become.

However, investors believe Parloa’s focus on practical enterprise integration, strong European foundation, and commitment to security and personalization give it a distinct advantage.

“Parloa reflects our belief that Europe can produce globally leading AI companies,” said Jeannette zu Fürstenberg, managing director and head of Europe at General Catalyst. She emphasized Parloa’s early traction as a sign that European innovation in AI is catching up to—if not rivaling—Silicon Valley’s.

Scaling up in Europe and North America

With its $120 million funding secured, Parloa plans to channel the capital into scaling operations, strengthening its R&D, and expanding its engineering and customer success teams. The company has also made clear that it intends to further penetrate the North American market, building on the momentum already generated from its New York office.

This expansion is not just about sales—it’s also about competing for AI talent, especially in the wake of global demand for engineers with expertise in machine learning, natural language processing, and ethical AI design.

As Parloa continues to roll out its AI agents for customer service, it hopes to not only improve user satisfaction but also ease operational burdens on enterprises by reducing wait times, improving issue resolution accuracy, and cutting down on labor-intensive support infrastructure.

The broader AI trend in customer service

Parloa’s success is part of a larger industry trend where AI is being infused into mission-critical business functions. From banking to telecommunications to e-commerce, companies are betting that smart agents can deliver better customer engagement at lower cost.

Still, challenges remain. As customer service becomes more dependent on AI, questions around data usage, transparency, and ethical handling of user interactions will require vigilant oversight. Investors backing companies like Parloa are betting that these issues can be managed through good design, regulatory awareness, and continuous innovation.

For now, Parloa’s momentum suggests that AI startup Parloa raising $120 million is more than just another funding headline—it may signal a tipping point in how customer service is delivered worldwide.

As the company moves forward, all eyes will be on how it manages its billion-dollar valuation, how it adapts to competitive pressures, and whether its technology can truly deliver on the AI promise in customer service at scale.