In a significant development, Yellow.ai, the Bengaluru-based conversational AI company, has strategically deployed 30% of its global generative artificial intelligence (GenAI) bots in the Indian market, marking a surge in the adoption of AI for customer engagement in the country.
Unlike the trend in the United States, where GenAI is primarily utilized for cost-cutting in customer support, Indian businesses are leveraging this technology to not only streamline support but also to boost revenues, generate business leads, and provide robust sales support. Yellow.ai’s CEO, Raghu Ravinutala, highlighted this distinctive approach, stating, “While markets like the US are mostly using GenAI for customer support in a bid to cut costs, India Inc. is using them as an opportunity to grow revenues.”
Yellow.ai, founded in 2016 and backed by prominent investors such as Sapphire Ventures and Salesforce Ventures, has witnessed substantial success in its recent deployment of approximately 120 GenAI bots globally. Of these, a notable 30% have been directed towards the Indian market, contributing to a paradigm shift in the application of AI for business growth.
The impact of Yellow.ai’s GenAI is evident among its clientele, with Bajaj Auto Finance generating over 100 leads and a leading non-banking financier processing more than 400 auto-loan applications. Furthermore, a top two-wheeler manufacturer achieved remarkable sales figures, selling motorcycles worth about Rs 1 crore on the launch day, while a finance company secured potential customers and sales leads totaling approximately $100 million.
Ravinutala disclosed that Yellow.ai is contemplating a public listing in the US by 2026–27, aligning with market expectations of recovery from the current subdued macroeconomic climate. The company is optimistic about turning profitable this year, showcasing its resilience and adaptability to market dynamics.
Amid the ongoing global macroeconomic slowdown, Yellow.ai has experienced a surge in demand for its GenAI offerings. The quarter ending January has emerged as a pivotal period, with India leading in terms of GenAI adoption and the largest Annual Recurring Revenue (ARR) on the Yellow.ai platform. The company anticipates substantial growth in the Indian market, projecting over 60% expansion next year, contributing an estimated $20–30 million to the overall global revenue, which aims for a run rate of $60–70 million.
Research by Adobe indicates a trend among Indian companies, with a substantial percentage reducing budgets in marketing and customer experience. However, nearly 60% of these companies plan to deploy GenAI in these areas, aligning with Yellow.ai’s core value proposition of reducing costs in customer support through automation.
Ravinutala emphasized that the company’s measured approach to hiring and employee strength, despite its success, reflects an understanding of the evolving landscape. With 680 employees, including 570 based in India, Yellow.ai envisions maintaining this strength without a significant increase, stating, “Over the next few years, we don’t see this (employee strength) going to 1,000-2,000.” Yellow.ai’s commitment to innovation and efficiency positions it as a key player in the evolving landscape of AI-driven customer engagement, setting the stage for further growth and market impact.