EliseAI has secured $250 million in a Series E funding round to grow its automation solutions for the healthcare and housing industries, the company told Reuters.

This investment values the company at over $2.2 billion, doubling its worth from about a year ago.

The funding round was led by Andreessen Horowitz, with contributions from Bessemer Venture Partners and existing investors such as Sapphire Ventures.

Company Revenue Surpasses $100 Million; Plans Team Expansion

Based in New York, EliseAI develops AI technology to automate customer service and operational processes. The company exceeded $100 million in annual recurring revenue earlier this year.

CEO Minna Song said the new funding will support product innovation and double its roughly 300-person workforce over the next year, with hiring planned in New York, San Francisco, Boston, and Chicago.

Andreessen Horowitz Emphasizes Deep Industry Focus of Vertical AI

The funding reflects investor interest in vertical AI companies that create industry-specific, deeply integrated solutions rather than general-purpose AI models.

Alex Immerman, partner at Andreessen Horowitz, said, “A vertical AI like ours will go really, really deep and will take that customer request and then handle every step that's required to resolve it,” including vendor coordination, scheduling, and compliance.

Healthcare Automation Grows Alongside Housing Industry Roots

EliseAI started by focusing on the housing sector in 2017 and expanded into healthcare in 2022.

The company noted that healthcare shares similar communication challenges and manual tasks.

CEO Song said, “We've seen a fundamental shift in the market, from talking about AI to using it to solve costly problems. The demand from our customers was really strong, and so we decided that now is the time to invest in scaling.”

AI Platform Integrates with Health Records and Generative AI

EliseAI serves clients such as Zillow Group and other rental managers, with its technology used in one out of every eight apartments in the U.S.

In healthcare, the focus is on outpatient specialties, including dermatology and women's health.

The platform integrates with electronic health record systems to automate administrative work.

It also leverages generative AI models, including those from OpenAI, to handle more complex customer requests and workflows.

PHOTO: FREEPIK

This article was created with AI assistance.