AI startup Entropik raises $25 million in Series B led by Bessemer, SIG Capital

Entropik, an artificial Intelligence-based market research platform, has raised $25 million in a mix of equity and debt in its Series B funding round led by Bessemer Venture Partners and SIG Venture Capital.

The round also saw participation from Trifecta Capital, Alteria Capital, and long-time existing investor Bharat Innovation Fund, the firm said in a statement on Wednesday.

Entropik is planning to use the funds raised towards bringing innovation in consumer research for global brands and to build products out of India, enabling research, marketing, and product teams. The funds will also be deployed for expanding their footprint across the US, Europe, and Asian markets.

Founded in 2016 by Ranjan Kumar, Lava Kumar and Bharat Shekhawat, Entropik enables research, marketing, and product teams to move towards a more continuous, collaborative way to capture user feedback. The company specialises in using emotion AI like facial expressions, eye gaze and more to help companies build better products.

“We are thrilled to have Bessemer Venture Partners and SIG Venture Capital join this journey. The new round also comes as a testament to the rigor and hard work put in by our global team and the trust put by enterprises in our offerings.” said founder Ranjan Kumar in the statement.

Entropik claims to have grown around seven times in the last two years, riding on its patented Emotion AI Technologies and driven by its expansion into the markets of the US, Europe, Southeast Asia, and the Middle East.

Over 150 global brands across finance, media, consumer goods, food and beverage, and entertainment leverage Entropik's consumer research stack to make better consumer-centric decisions faster and more efficiently.

In September 2020, Bengaluru-headquartered Entropik raised around Rs 60 crore in funding as part of its Series A round, led by  Alpha Wave Incubation with participation from existing backers.

It had raised $1.1 million pre-Series A round from Bharat Innovation Fund and Parampara Capital in July 2018.

“Entropik provides a faster and cheaper alternative for businesses to interact and understand customer feedback. In an increasingly digital world, consumer and user insights become core to businesses' success in cultivating a loyal customer base,” said Bhavanipratap Rana, Investment Advisor to SIG Venture Capital.

Marketers can now measure more accurately and assess consumer feedback with Entropik's products, like Affect UX, Labs, and Decode. We are excited to invest and support the team at Entropik as they expand into new markets, Rana added.

The company has around 17 patents in multi-modal emotion AI technologies like Facial Coding, Eye Tracking, and Voice AI.