[Funding]: Hippo Video raises $4.5m in Series A round led by Alpha Wave Incubation and Exfinity Venture Partners

Hippo Video is a fast-growing company in the video-driven Customer Experience (CX) domain. In the latest development, the startup has raised $4.5 million in Series A funding. Alpha Wave Incubation (AWI), a $300m venture fund, led the round. AWI is by Falcon Edge Capital, a leading global alternative asset manager, and backed by ADQ, one of the largest regional holding companies based in Abu Dhabi, and Exfinity Venture Partners.

Existing investors Sequoia Capital India’s Surge, and KAE Capital also participated in this round. This latest round of funds will be used to propel the company to expand its GTM teams. The startup will also ramp up the engineering team.

Talking about the investment, Navroz D. Udwadia, Partner, Falcon Edge Capital stated, “We are excited to back Karthi and an outstanding team at Hippo Video. They bring decades of experience in building and scaling SaaS products globally via their domain expertise at Zoho. Hippo Video has and continues to demonstrate outstanding strong organic traction, customer retention, and like-for-like ACV growth. Most critically, customer feedback on the Hippo Video suite of products is tremendous.”

As part of this investment from AWI, Hippo Video will expand its presence to Abu Dhabi. Further, it will use the Emirate as a strong global base for international expansion. It will also target the GCC, MENA, and other global markets. Hippo Video will also build a world-class team of data scientists, product managers, and engineers located in Abu Dhabi.

“Post Covid, there is a massive uptick in videos as a default mode of communication. All parties engaging in videos acclimate to it. We believe that Hippo Video, with its technology of making personalized videos at scale and importantly, at a cost that is not different from mail and other notifications, has immense potential to make sales and support processes effective, leading to superior conversion and engagement for its clients. This is imperative in the post Covid world, where ROI on marketing is a key metric for enterprises. Going forward, other use cases like internal/external communication by enterprises will propel further growth.” said Shailesh Ghorpade, Managing Partner and CIO at Exfinity Venture Partners.

Hippo Video Growth

Hippo Video has demonstrated 4x+ year-on-year revenue growth, 100%+ net dollar retention, and a 4x LTV/CAC already, showing strong signs of product-market fit. Going by their product reviews in the G2 crowd, where they have just become the leaders, sales reps actually refer to their colleagues to try the platform and become customers after tasting success with videos. Armed with this brilliant product-led growth, Hippo Video aims to put its video CX platform in the hands of every business right from SMBs to enterprises.

“It's been a privilege to watch the Hippo Video team scale and ascend new heights. Their journey and commitment to excellence in the video technology landscape have given us the confidence to back them consistently”. Gaurav Chaturvedi, Partner at KAE Capital said.