Cyara has raised $350 million in a Series B funding round led by K1 Investment Management (K1). The investment will support the growth of the Automated CX Assurance Platform vendor. Cyara is one of the early contact centre testing market leaders and recently added a white glove testing solution for toll-free numbers to extend its platform capabilities.
With the increased eCommerce and remote selling, organisations have continued to turn to manned and unmanned contact centre operations. Customer expectations are increasing, and a poor experience calling a company is often detrimental to revenue and brand reputation.
With the contact centre market set to grow to $149.58 billion by 2030, according to Grand View Research, K1 feels there is a good opportunity here. Forrester estimates that the contact centre testing market will reach $6.5 billion by 2024.
Roy Liao, Principal at K1, said, “Cyara provides mission-critical software and is led by a visionary management team. We look forward to supporting Alok and the management team to execute on their growth strategy and further cement their position as the category leader in automated customer experience.”
Cyara last raised funds in a Series A round in 2016 led by PeakSpan Capital, raising $25 million. PeakSpan will continue as a minority shareholder after this current round. It is not clear whether K1 will become a majority shareholder, nor what the valuation of Cyara is at the time of funding.
Cyara customers see the benefits
Founded in Melbourne by CEO Alok Kulkarni, CTO Luan Tran, and Executive Director Bonny Malik Cyara assists blue-chip customers to automate testing and monitoring of their contact centres. Cyara already has more than 300 customers including Vitality, ABN AMRO, and National Australia Bank (NAB).
Alex Kocher, Head of Technology and Assisted Channels at National Australia Bank (NAB), said, “NAB has worked collaboratively with Cyara for over 10 years. The visibility they provide, in terms of agent voice quality and connectivity issues, means we can diagnose problems before they occur. We can get ahead of any disruption to our customer experience and really support our front-line staff, wherever the agent or banker is based.”
A new chapter at Cyara
Alok Kulkarni, CEO of Cyara, commented: “Cyara was founded with a vision to improve customer experience, and we’re delighted to have found a partner in K1 that is committed to the same values and wants to accelerate our growth aspirations.
“Organizations can succeed or fail based on their customer experience. More companies are realizing the business-critical nature of the work we do and we’re excited to have the firepower to grow and continue to attract the best people globally. We’re at the beginning of a very exciting new chapter.”
Cyara will use the funding to further develop its product portfolio through R&D and acquisitions. The release also talks about expanding the CX Assurance into emerging digital channels. This is vague, but one might expect some development to support more social media channels and more sophisticated testing options. For example, the toll-free number testing only goes down a single level of IVR.
Will Cyara develop a tool that tests down multiple levels? It also supports Omnichannel testing, but it will undoubtedly extend that product’s capabilities.
Cyara will also look to expand internationally, with offices in the US, the UK and Australia; where will it go next? More offices in the US for greater coverage, mainland Europe or Asia?
Enterprise Times: What does this mean
This is a large investment for Cyara. Cyara has grown successfully over the last six years since its last round of funding. Having received the funding, the expectations on Kulkarni and his leadership team will now increase.
One indication of how Cyara is looking to expand is its careers page. It is seeking a Direct for Global Strategic Alliances and several R&D positions in Australia and India. As it looks to expand its reach, will it target other vendors, Sis or both? Which regions will it target? Will it introduce an industry focus to its sales and marketing efforts?