Paris-based AI photo editor, Photoroom, reaches $500 million valuation after raising $43 million in Series B funding round
Photoroom’s new funds will be invested in R&D, infrastructure, and hiring additional employees to expand its team to 100 by the end of the year.
Paris-based AI photo editing app, Photoroom, has achieved a significant milestone by reaching a valuation of $500 million following a successful Series B funding round that raised $43 million. The funding round was led by Balderton Capital, with participation from new investor Aglaé and existing investors such as Y Combinator. Although the names of other investors have not been disclosed, previous investors include Kima Ventures, FJ Labs, Meta, and several angels such as Yann LeCun, Zehan Wang, Hugging Face and Disney+ executives, among others.
Photoroom, co-founded by CEO Matthieu Rouif and CTO Eliot Andres, has been attracting both casual and business users with its ability to visualize photo ideas within minutes. The latest funding round has been in the works since January and was initially expected to value the company higher at $50 million. However, the successful funding round has now brought Photoroom’s total funding to $64 million since its launch four years ago.
The new funds will be invested in Photoroom’s R&D and infrastructure, as well as hiring additional employees. Despite the current trend of mass layoffs within the tech sector, Photoroom plans to expand its team from the current 50 employees to 100 by the end of the year.
Photoroom operates in a highly competitive market with notable players such as Picsart and Pixelcut. However, the AI editing app has reported reaching 150 million downloads and currently processes 5 billion images. In addition to the app, Photoroom is also available through an API and a web service. Unlike other AI photo editing app rivals, Photoroom has trained its own models from scratch, requiring more investment in computing power and content deals from publishers, artists, and other content creators. This also means that the company needs to hire more talent with technical expertise to run operations for all these models.
In conclusion, Photoroom’s successful Series B funding round has propelled the company to a $500 million valuation, enabling it to invest in R&D, infrastructure, and hiring additional employees. With its unique approach to AI photo editing and plans to expand its team, Photoroom is well-positioned to continue attracting both casual and business users in a highly competitive market.
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