Yazi, a South African startup leveraging artificial intelligence and WhatsApp for market research, has successfully closed its first institutional funding round. The investment, led by 3 Capital Ventures, establishes a pre-money valuation of $1.6 million for the two-year-old company. This capital injection is set to accelerate product innovation and support Yazi's expanding international footprint across Africa and Europe.
A New Approach to Market Research
Founded in 2022 by CEO Timothy Treagus and CTO Mzwandile Sotsaka, Yazi was created to address a significant gap in the research industry. The founders recognized that traditional methods requiring app downloads or email are ineffective in markets with high mobile messaging penetration. Yazi's platform circumvents these barriers by engaging participants directly on WhatsApp, a channel they already use and trust daily.
The platform is built with an AI-native approach, conducting interviews that mimic natural human conversation with real-time follow-up questions. This technology allows for research at a massive scale, automating tasks from multi-day diary studies to data analysis. The system generates transcripts, identifies key themes, and produces presentation-ready insights, significantly streamlining the research process for its clients.
Fueling International Expansion and Innovation
The newly secured funds are earmarked for three primary areas of strategic development to bolster the company's competitive edge. A key focus will be the launch of automated voice interviews via WhatsApp, a feature designed to include low-literacy populations. The investment will also be used to expand its proprietary research panel of 1.8 million participants across the African continent.
Furthermore, the capital will fuel Yazi's international expansion, responding to growing demand from research agencies in the United Kingdom and Europe. CEO Timothy Treagus noted that this global interest is largely organic, driven by strong search engine rankings and recommendations from AI tools. This unique acquisition channel highlights the platform's global relevance and appeal in a rapidly evolving digital landscape.
Demonstrating Strong Market Traction
Yazi has demonstrated significant commercial traction, reporting a 2.5x increase in revenue over the past financial year. The company's growth has accelerated recently, with a 64% month-on-month increase in its latest quarter. This momentum is underscored by the fact that over 65% of its revenue is now denominated in foreign currencies.
The startup serves a notable roster of major South African enterprises, including Old Mutual, Discovery, Capitec, and Pick n Pay. Its partnership with global research firm Ipsos, which recently signed a 12-month contract, further validates its model. These long-term commitments from industry leaders signal strong market confidence in Yazi's innovative research solutions and its ability to deliver valuable insights.
This funding round marks a pivotal moment for Yazi, validating its vision of making research more accessible and efficient through familiar technology. By capitalizing on the convergence of AI and messaging-first communication, the company is well-positioned to scale its operations across Africa and beyond. The investment from 3 Capital Ventures provides the necessary resources to redefine research standards on a global scale.