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LatAm Startup Vambe Boosts ARR to $1M After Pivot to AI

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LatAm Startup Vambe Boosts ARR to $1M After Pivot to AI

Vambe, a Santiago-based startup, has transformed its business trajectory by pivoting to conversational AI tools. Originally founded in 2023 by Nicolás Camhi, Matías Pérez Pefaur, and Diego Chahuán, the company began as a CRM for debt collection. However, customer interest in its WhatsApp-based AI agents spurred a strategic shift in March 2024. The result? An impressive surge in annual recurring revenue (ARR) from $20,000 before the pivot to $1 million as of November.

The company now focuses on helping small and medium-sized businesses (SMBs) streamline customer communications and close sales using AI agents on platforms like WhatsApp. Vambe’s customers range from small local businesses, such as carpet cleaners, to large retail companies with thousands of employees.

This rapid growth has attracted significant investor interest. Vambe recently closed a $3.85 million seed funding round led by Brazil’s Monashees, with participation from Mexico’s Nazca and U.S.-based M13. Notably, this marks M13’s first investment in a Latin American startup. The venture capital firm was impressed by Vambe’s technology after testing it on a mock business scenario, highlighting the platform’s ease of use and efficiency.

M13 partner Brent Murri emphasized the unique market fit for Vambe’s technology in Latin America, contrasting it with the crowded U.S. conversational AI market. He noted that SMBs in the region exhibit a higher willingness to adopt AI solutions due to the culturally conversational nature of business in LatAm, where direct interaction often precedes transactions. Vambe co-founder Camhi echoed this sentiment, explaining how businesses in the region prioritize personalized communication over transactional interactions.

Competition in the Latin American market is heating up. Ecuador-based Mercately and several U.S. companies, such as Sierra, ElevenLabs, and Voiceflow, are also building conversational AI solutions. However, Vambe’s focus on enabling Spanish-speaking SMBs and enterprises appears to give it a distinct edge, particularly as it seeks to expand further into Mexico and Spanish-speaking communities in the U.S.

Looking ahead, Vambe plans to expand its team, enhance its technology, and continue empowering businesses with advanced conversational AI tools. “We are putting extremely advanced technology in the hands of businesses that don’t even know how to prompt,” said Camhi. “They are really increasing their sales and reducing their costs.”


Featured image courtesy of Vambe.ai

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