In a significant stride towards advancing conversational AI in Africa, Egypt-born DXwand, co-founded by Ahmed Mahmoud (CEO) and Mahmoud Gomaa (Growth Lead), has successfully secured a substantial $4 million in Series A funding. This injection of capital is poised to catapult the company's AI platform, initially designed to aid small businesses, into a continent-wide expansion.
DXwand's Inception in 2018
DXwand embarked on its journey in 2018, driven by the vision of Ahmed Mahmoud and Mahmoud Gomaa. The dynamic duo aimed to empower small businesses by introducing custom, customer-focused chatbots designed to drive sales on social media platforms. The company gained early traction with an initial seed funding of $150,000 from angel investors in Qatar and Egypt.
Identifying a Gap
Ahmed Mahmoud, having previously worked at Microsoft, observed a significant gap in the development of conversational AI and other AI technologies tailored for Arabic and other MENA languages. Silicon Valley's focus on Western languages left a void in Arabic-specific solutions. Fueled by this realization, Mahmoud resigned from Microsoft to establish DXwand, setting out to address the challenge of developing an AI system proficient in handling Arabic dialects.
From Small Businesses to Corporations
DXwand encountered success in its initial phase but recognized the need for strategic adaptation to achieve sustained profitability. In 2021, the company underwent a pivotal shift, transitioning from targeting small businesses to catering to corporations and enterprises. This shift in focus honed in on knowledge mining and retrieval augmented generation (RAG) domains.
Multifaceted AI Solutions: DXwand's Evolution
Currently, DXwand's AI-powered software automates text and voice conversations across various communication channels such as call centers, Facebook Messenger, WhatsApp, SMS, and websites. The platform facilitates interactions between businesses, their employees, clients, and user-facing government services, offering a multilingual function that has proven invaluable.
Strategic Investments for MENA Expansion
Between 2021 and 2022, DXwand secured additional investments to scale its innovative solution within the MENA region. Notable investments include a $1 million pre-Series A fund from the Dubai Future District Fund and a $1.3 million seed extension from SOSV and other investors.
Profitability and Client Growth: DXwand's Success Story
Today, DXwand stands as a profitable entity, having assisted over 200 clients across various sectors, including healthcare, e-commerce, fintech, telecom, government, and legal. The company's chatbot currently serves more than 40 clients throughout the MENA region, fostering growth and efficiency.
Financial Milestones and Future Prospects
DXwand's impact is reflected in its facilitation of over five million monthly conversations. The company charges a yearly subscription ranging from $50,000 to $400,000. The CEO proudly revealed that DXwand grossed more than $5 million in annual recurring revenues in 2023, showcasing a remarkable 2x year-over-year growth. This financial success positions DXwand as a formidable force in the AI landscape, ready to extend its influence across the African continent.