Redmond, Washington-based startup ConverzAI, a provider of AI-driven recruitment automation, has raised $16 million in a Series A funding round to drive product innovation and expand its market reach.
The round was led by Menlo Ventures, with participation from Left Lane Capital, Foundation Capital, and Afore Capital.
The funding will support ConverzAI’s plans for international expansion, workforce growth, and enhancements to its AI-powered virtual recruiters.
ConverzAI claims its virtual recruiters significantly boost hiring efficiency and revenue
Founded in 2019 by CEO Ashwarya Poddar, ConverzAI has developed AI-driven virtual recruiters that handle key elements of the hiring process—from sourcing and engaging candidates to screening and final placement decisions.
The platform engages candidates through voice, text, and email, analyzing responses in real-time to streamline recruitment workflows, reduce hiring bias, and improve efficiency.
ConverzAI claims that its virtual recruiters have processed over 100,000 jobs and engaged millions of candidates, resulting in tens of thousands of successful placements.
The company also states that some customers have seen recruitment efficiency improve by 30% and revenue increase by up to 40% after implementation — though it did not specify how those numbers are measured.
One of the platform’s key advantages is its ability to significantly accelerate hiring timelines. According to ConverzAI, the platform can reduce time-to-placement by as much as 90% while maintaining a high-quality candidate experience.
The AI recruiter automates routine administrative tasks such as initial outreach, follow-ups, and screening conversations, allowing human recruiters to focus on relationship-building and strategic decision-making.
Investor support for AI recruiting
Venky Ganesan, a partner at Menlo Ventures, expressed confidence in ConverzAI’s ability to reshape the recruitment industry.
He noted that ConverzAI operates at the intersection of agentic AI, voice AI, and recruiting, offering a fully automated recruitment solution that still prioritizes the candidate experience.
Founder & CEO Ashwarya Poddar emphasized that ConverzAI’s vision is to create transformational value for staffing firms. “Conducting entire business conversations through AI technology is game-changing,” she said.
She also highlighted the company’s commitment to advancing agentic AI and voice AI, positioning ConverzAI as an essential recruitment partner for staffing firms.
Customer impact and adoption
Several industry leaders have endorsed ConverzAI’s technology, citing tangible improvements in hiring speed, candidate engagement, and overall recruitment outcomes.
Rob Lowry, Chief Talent Strategy Officer at Apex Systems, noted that ConverzAI’s virtual recruiters have had over 250,000 candidate conversations and achieved a candidate satisfaction score exceeding 80%.
He emphasized that the platform has significantly accelerated recruitment efforts while improving the quality of candidate data.
Richard Wahlquist, CEO of the American Staffing Association, echoed this sentiment, stating that ConverzAI’s AI-powered virtual recruiters are setting a new standard in staffing innovation, helping businesses optimize hiring outcomes at scale.
Future plans of expansion
With this new funding, ConverzAI aims to increase its workforce and expand internationally by the end of the year.
The company is also focused on continuous innovation, particularly in enhancing the scalability, personalization, and decision-making capabilities of its AI-powered recruiters.
The platform’s rapid deployment capabilities—allowing staffing firms to implement the solution in under five days—continue to be a major selling point, particularly as the industry shifts toward AI-powered efficiency solutions.
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