Israel-based Rylo, formerly Nagish, raised US$85 million at an estimated valuation of about US$500 million in a round led by General Catalyst and Canaan.

All existing investors, including Cardumen, Vertex Precursor, and K5, also invested. Rylo’s total funding now stands at US$101 million after it had previously raised US$16 million.

Founders Tomer Aharoni and Alon Ezer started the company in 2022.

Rylo develops AI-powered speech-to-text and text-to-speech tools that help deaf and hard-of-hearing users make phone calls without traditional relay operators. The platform supports 50 languages and focuses on the US market.

In the US, Rylo’s revenue model depends on Federal Communications Commission authorization to provide IP CTS, or internet protocol captioned telephone service, under the federal relay framework.

That allows the company to receive reimbursement through a federally funded program instead of charging users directly.

A law firm announcement said the Federal Communications Commission had previously certified an automatic speech recognition-only IP CTS provider, indicating that AI-only captioning services can qualify in this category.

🔗 Source: Calcalist