Yoodli is on a roll.
The Seattle startup, which sells AI-powered software to help people practice real-world conversations such as sales calls and feedback sessions, announced a $40 million Series B round on Tuesday to fuel growth. WestBridge Capital, a $7 billion global investment firm, led the round.
The fresh funding comes less than a year after the company’s $13.7 million Series A round in May.
Yoodli’s software lets users create personas to simulate conversations with another person or multiple people. The company’s model is trained on effective communication techniques and can be customized depending on an organization’s goals. Customers include SAP, Google, Snowflake, the University of Washington, Korn Ferry, and others.
“At a moment when AI is replacing human jobs, we’re doubling down on a different belief: that AI should help people become the best version of themselves in the conversations that matter most,” co-founder and CEO Varun Puri wrote on LinkedIn.
Yoodli’s revenue has grown around 900% in the past year. Its headcount has tripled to more than 40 people.
Puri told GeekWire earlier this year that Yoodli is like a “batting cage before game time,” or a flight simulator for communication. The idea is to replace passive formats such as slide decks and training videos with interactive practice that builds conversational muscle memory.
The company said it will use the new funding to expand into what it calls “experiential learning.”
“Experiential learning is the next step of conversation coaching — helping people learn, practice, and apply skills with roleplays at the center of their experience,” Puri wrote. “We’re making learning more fun and actionable for individuals and much more closely tied to ROI for organizations.”
The raise comes amid competition in the AI-powered workforce training market, as employers look for tools to upskill workers in communication, leadership, and customer engagement — areas where traditional learning management systems may have limitations.
Puri and Esha Joshi launched Yoodli in 2021 at the AI2 incubator in Seattle. The startup got off the ground with a consumer-focused offering targeted at practicing public speaking.
Neotribe and Madrona also participated in the latest funding round. Total capital raised is nearly $60 million.
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