Manychat, a conversational AI company, has raised US$140 million in a funding round led by Summit Partners, bringing its total funding to US$163.3 million since 2015.

The company offers automation tools for platforms like Instagram, TikTok, WhatsApp, and Facebook Messenger. It serves over one million businesses in more than 170 countries.

Manychat’s AI platform, launched in 2024, is now used to handle customer interactions at scale. The company, already profitable, aims to improve customer engagement across social and messaging platforms.

The new funds will support global expansion, R&D, and new AI features.

🔗 Source: Manychat

🧠 Food for thought

1️⃣ Social commerce explosion creating billion-dollar opportunities for conversational tools

The fundraising for Manychat comes amid significant growth in social commerce, with 55% of online shoppers having made purchases through social media channels as early as 20181.

This trend has only grown since then, creating a need for businesses to optimize their presence and conversational capabilities across multiple platforms.

In markets like China, social commerce has already reached approximately CNY 2 trillion (roughly $310 billion USD), growing at over 60% year-on-year and engaging more than 48 million users2.

The integration of shopping features directly into social platforms, as seen with Instagram, Snapchat, and TikTok, has changed consumer expectations, demanding more immediate and personalized interactions3.

Manychat’s ability to operate across multiple messaging platforms (Instagram, TikTok, WhatsApp, Facebook Messenger) positions it well to help businesses navigate this fragmented landscape where consumers increasingly expect seamless commerce experiences.

2️⃣ AI chatbots delivering measurable business ROI through cost reduction

Manychat’s funding reflects a broader business reality: AI-powered conversational tools deliver concrete cost savings, with businesses able to reduce customer service costs by up to 30% through chatbot implementation4.

Industry projections from several years ago estimated brands would save $8 billion through chatbot usage by 2022, with 85% of customer interactions predicted to be handled without human agents4.

The economic case for these platforms has grown stronger as the technology has matured, with the global chatbot economy projected to reach $1.25 billion by 2025 and 80% of business decision-makers planning to integrate chatbots into their operations5.