Yellow.ai integrates 30% of its global GenAI bots in the Indian market

The utilization of generative artificial intelligence (GenAI) for enhancing customer engagement is witnessing significant traction in India. Yellow.ai, a leading conversational AI company, successfully deployed approximately 120 GenAI bots globally in the current fiscal year, with a notable 30% being directed towards the Indian market.

Unlike the U.S., where GenAI is predominantly employed for streamlining customer support and reducing costs, Indian businesses view it as an avenue for expanding revenues, generating business leads, and offering comprehensive sales support, according to Raghu Ravinutala, the co-founder and CEO of Yellow.ai.

Founded in Bengaluru in 2016, Yellow.ai has secured substantial backing from notable investors, including Sapphire Ventures, Westbridge Capital, Salesforce Ventures, and Lightspeed Venture Partners, amassing a total funding of approximately $102 million as per Tracxn records.

Among Yellow.ai's distinguished clientele, Bajaj Auto Finance experienced notable success by garnering over 100 leads through the implementation of Yellow.ai's GenAI chatbot. Similarly, a prominent non-banking financial institution processed more than 400 auto-loan applications. The GenAI assistant facilitated a major two-wheeler manufacturer in achieving significant sales figures, selling motorcycles worth around Rs 1 crore on the launch day. Additionally, a leading finance company successfully secured potential customers and sales leads amounting to approximately $100 million.

Ravinutala revealed that Yellow.ai is actively considering a public listing in the U.S. by 2026-27, projecting a market recovery from the existing subdued macroeconomic conditions. The company anticipates achieving profitability in the current fiscal year.

Yellow.ai has observed a substantial surge in demand for its GenAI offerings, particularly in the quarter ending October. During this period, the company deployed roughly 100 bots across diverse sectors such as financial services, travel, retail, e-commerce, and technology. Yellow.ai follows the February to January period as its financial year.

Ravinutala emphasized that the quarter ending January (Q4) is witnessing the highest Annual Recurring Revenue (ARR) on the platform for India. Notably, India leads in terms of GenAI adoption on the Yellow.ai platform.

Anticipating a remarkable growth trajectory, Yellow.ai projects the Indian market to expand by over 60% next year, with estimated revenues from India ranging between $20-30 million. This would contribute significantly to the overall global revenue, targeting a run rate of $60-70 million. Presently, the global revenue stands at a run rate of $30-40 million, reflecting a robust annual growth rate ranging between 60-70%. The company envisions doubling its revenue in FY25.

According to research conducted by Adobe, a substantial portion of Indian companies is undergoing budgetary reductions in marketing and customer experience, with 42% having already implemented such measures, and an additional 37% planning similar actions in the coming year. Significantly, nearly 60% of these companies express intentions to deploy GenAI in these areas.

The global economic slowdown, coupled with increased urgency among companies to adopt GenAI, has positioned Yellow.ai for growth opportunities. The company's fundamental value proposition of reducing costs in customer support through automation aligns with the prevalent trend of businesses seeking cost-effective solutions.

Ravinutala conveyed that the company envisions maintaining this employee strength without a significant increase, stating, "We don't see this (employee strength) going to 1,000–2,000 over the next few years."