AI Startup Rephrase.ai secured $10.6 Million in Series A Funding Round

Rephrase.ai, a California-based generative AI startup that aims to humanize communication via synthetic media, has now secured $10.6 million in a Series A funding round.

Rephrase.ai was founded by Ashray Malhotra, Nisheeth Lahoti, and Shivam Mangla in the year 2019. It aims to democratize video, which makes high-quality video creation capabilities available for companies of all sizes across all industries.

It uses deep learning to create digital avatars of actual humans that can be used for synthetic video content with only text required as input.

The company has worked with more than 50 global enterprises, which includes Mondelez, Castrol, and Xiaomi, to name a few, to deliver high-quality video creation capabilities.

Carlos Angrisano, President at Red Ventures, said, "Given how people consume information today, scalable solutions to deliver personalized video are needed now more than ever. With the current mass customization of video content, our big bet is on the reinvention of the video production process, and that, as a business process technology, has incredible     potential. We are impressed by Rephrase.ai's leadership and talent bench, which is a tremendous competitive advantage in such a nascent field." 

Venkatesh Seetharam, Advisor at 8VC, said, "I believe a large opportunity is Rephrase.ai's ability to provide an easy-to-use API for anyone to create videos without high labor and time requirements. Their vision has the potential to be an inflection point in the video generation process. Rephrase.ai has the potential to become the defacto generative AI platform for video and is well positioned to build an invaluable company with a similar API strategy."

The round was backed by Red Ventures with participation from 8VC, Silver Lake, and some other investors.

The company, as of now, has plans to use the new funds to enhance its capabilities by integrating product experiences, scaling hiring across the business, which includes the marketing, sales, product, engineering, and AI teams, and expanding its presence in North America.