South Africa AI Research Startup Yazi Raises Funding Valued at $1.6M
TLDR
- Yazi, a South African startup operating through WhatsApp, raised institutional funding for product development and international expansion.
- Yazi's platform utilizes AI to conduct research through WhatsApp, attracting users globally and boasting high Google rankings for related keywords.
- The company's innovative approach merges messaging platforms with AI for efficient and cost-effective research studies, catering to the evolving market research landscape.
Yazi, a South Africa based research technology startup that operates through WhatsApp, raised its first institutional funding round at a pre money valuation of 30 million rand, or about $1.6 million.
The round was led by 3 Capital Ventures, an early stage venture firm created by investment manager Allan Gray.
The company did not disclose the size of the investment.
Yazi said the capital will fund product development and international expansion. The company plans to launch automated voice interviews through WhatsApp and expand its research participant network across African markets.
The platform allows organizations to run surveys, interviews and research studies through WhatsApp, the messaging service used by about 3.2 billion people globally.
The system uses artificial intelligence to conduct conversations with participants and analyze responses.
Yazi said the technology allows companies to run research studies without requiring users to download new applications or access web platforms.
Chief executive Timothy Treagus said most inbound demand now comes from outside Africa.
“We rank number one on Google for WhatsApp research keywords and more than 80% of our leads come through AI search,” Treagus said.
The company said many users find the platform through tools such as ChatGPT and Gemini when searching for research software that works on WhatsApp.
WhatsApp is widely used in several markets targeted by the company.
South Africa has about 28 million to 29 million WhatsApp users. The United Kingdom has about 41 million to 42 million users.
Across Europe, Spain has about 33 million users while Germany has more than 50 million.
Founded in 2022 by Timothy Treagus and chief technology officer Mzwandile Sotsaka, Yazi operates in more than 15 countries.
The company said it has access to a panel of about 1.8 million participants across different demographics and locations.
The platform is used by companies and research agencies to gather consumer feedback, product insights and policy research data.
Yazi said its revenue increased 2.5 times during the past financial year.
The company reported 64% month on month growth in the most recent quarter.
Clients include Old Mutual, Pick n Pay, Discovery, Capitec and Ipsos.
More than 65% of the company’s revenue now comes from international markets.
Ipsos recently signed a 12 month research contract with the company. Old Mutual is launching a quarterly research tracker using the platform.
Key Takeaways
Market research is undergoing structural change as artificial intelligence and messaging platforms reshape how companies collect consumer data. Traditional research methods often rely on email surveys, web forms and dedicated mobile applications. These methods can struggle in markets where smartphone storage, broadband access or email usage is limited. Messaging platforms provide a different distribution channel because they already sit inside daily communication habits. WhatsApp alone has more than 3 billion users worldwide and is the main messaging tool across many emerging markets. Research companies are beginning to build tools that operate directly inside these platforms to reach participants without requiring new software adoption. Artificial intelligence is also changing how research interviews are conducted. AI systems can run conversations with participants, ask follow up questions and analyze responses automatically. This reduces the cost and time required to conduct qualitative research studies. As companies seek faster consumer insights and wider geographic coverage, platforms that combine messaging channels with AI based analysis may become part of the next generation of research infrastructure used by brands, governments and consulting firms.
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