In India, consumers are inundated with daily phone calls, ranging from spam to legitimate inquiries from delivery personnel and financial service providers. While existing solutions like Truecaller and the government's Calling Name Presentation (CNAP) system help identify callers, they often fall short in providing context. This is where Equal AI steps in, developing an innovative assistant that answers calls on behalf of users, gathers pertinent information, and informs them about the purpose of the call.
Launched last year, the app is currently available for Android and has rapidly gained traction, boasting over a million monthly active users and 300,000 daily active users. The app not only screens calls but also displays the reason behind each call, enhancing user experience.
Equal AI allows users to quickly respond to calls with options like "Leave the delivery near the door" or "Give it to the neighbor." The AI reads these messages back to the caller, and users can also input custom replies. Additionally, the app records calls, enabling users to access both recordings and transcriptions within the app.
Recently, Equal AI announced it has raised $30 million in Series B funding, led by Prosus Ventures and Tomales Bay Capital, with contributions from Think Investments and Valiant Fund. Notable individual investors include Sameer Nigam, founder of PhonePe, and Sandhya Devanathan, VP of Meta India and Southeast Asia. This latest funding round brings the total investment in Equal AI to over $42 million.
The funding structure is unique, consisting of three tranches with varying valuations based on the achievement of specific milestones. This approach allows the startup to showcase its highest valuation, even if most equity is sold at a lower price point. However, Equal AI has chosen not to disclose its exact valuations.
Founded by Keshav Reddy in 2022, Equal AI originated as a data-sharing platform for financial services. Reddy, who comes from the GVK family, recognized the need for a customer-facing solution, leading to the development of the call assistant. He noted that users often receive numerous calls related to financial services, making it challenging for individuals to manage these inquiries effectively.
Currently, the app screens only unknown calls, but plans are underway to enable screening for known numbers as well. Future features may include proactive actions, such as sending a delivery address via text or making outbound calls to schedule appointments. An iOS version of the app and a premium subscription tier are also in development.
Equal AI employs a combination of speech recognition and generation technologies, tailored to accommodate India's diverse linguistic landscape, including support for over ten languages. This adaptability is crucial, as many consumers engage in code-mixing, blending multiple languages in conversation.
Facing competition from tech giants like Google and Apple, as well as established players like Truecaller, Equal AI distinguishes itself through its deep understanding of the local context. Prosus Ventures' Thiago Viana emphasized that this local insight is a significant advantage.
Equal AI aims to transform the way users handle calls, offering contextual information that enhances communication. If successful in addressing specific use cases, the app could quickly gain popularity and expand its functionality in the future.