Egyptian startup Tactful AI has raised $1 million in a Pre-Series A round to accelerate the development of what it describes as agentic customer experience infrastructure. The round was co-led by Foras AI and M Empire, with participation from a group of deep-tech angel investors. The funding marks a new chapter for the Cairo-founded company as it prepares for regional expansion and a larger Series A raise within the next year.
Rapid Growth Driven by Product–Market Fit
Over the past 12 months, Tactful AI reports that it has achieved more than 100x growth in platform usage. The company attributes this surge to a deliberate focus on product–market fit and close collaboration with a limited group of enterprise clients. Rather than scaling rapidly across markets, the team concentrated on deploying its technology in production environments and refining its offering based on real-world feedback.
Building Agentic Customer Experience Infrastructure
Tactful AI positions itself as a next-generation customer experience platform designed to help enterprises transition from traditional automation to agentic execution. In this model, artificial intelligence systems are able to resolve customer requests end to end within predefined operational controls. The company argues that this approach enables faster response times, deeper personalization, and continuous optimization without adding operational complexity.
Enterprise Client Portfolio Across Key Sectors
The platform is currently used by major enterprise clients in Egypt, including Elaraby Group, Raneen, Lucky App, valU, and Bosta. These customers operate across retail, fintech, logistics, and consumer services, reflecting the broad applicability of advanced CX infrastructure. By working closely with these organizations, Tactful AI has focused on modernizing service operations and embedding AI in responsible, production-ready workflows.
Allocation of Capital and Market Expansion Plans
The newly secured capital will be directed toward strengthening the company’s position in the Egyptian market, where it has already demonstrated significant traction. Tactful AI also plans to validate and expand into new regional markets across Europe, the Middle East, and Africa. A substantial portion of the funds will support research and development, with an emphasis on enhancing agentic capabilities, scalability, and integrations.
Continued Commitment to Research and Series A Ambitions
This Pre-Series A follows a previously announced $5 million investment in research and development over recent years. The company now intends to double that R&D commitment over the next three years as it builds out its technology stack. Management has indicated that it is targeting a formal Series A round within the next 12 months to further scale operations.
Participation from Prominent Tech Founders
In addition to institutional backing from Foras AI and M Empire, the round attracted prominent technology founders and operators. Among the participating investors are Omar Gabr, co-founder of Luciq, formerly Instabug, Mohamed Samir, founder of Si-Bits, and Ahmed Fakhry, co-founder of Infinilink. Company founders Mohamed Elmasry and Mohamed Hassan also participated in the round, signaling internal confidence in the company’s growth trajectory.
Management Buyback and Strategic Reset
Tactful AI previously underwent a full management buyback after being acquired in 2022 by European communications firm Dstny. The buyback allowed the founding team to regain strategic control and reposition the company around its long-term vision for AI-driven customer experience. Since then, the company has sharpened its focus on enterprise-grade deployments and sustainable growth.
Founder and Investor Perspectives
According to founder and CEO Mohamed Elmasry, the past year was defined by prioritizing depth over speed to ensure that agentic AI applications delivered measurable impact. Investors echoed this sentiment, highlighting the company’s disciplined execution and its ability to translate advanced AI concepts into tangible operational improvements. With fresh capital and renewed strategic clarity, Tactful AI is aiming to establish itself as a category-defining CX platform in Egypt and across the broader region.
As enterprises increasingly treat customer experience as a durable competitive advantage, platforms that combine speed, adaptability, and intelligent execution are gaining strategic importance. Tactful AI’s latest funding round underscores investor confidence in agentic AI as the next evolution of CX infrastructure. With continued investment in research and regional expansion, the company is positioning itself to play a leading role in shaping the future of enterprise customer service across EMEA.