Vendasta seeks to transform into an AI customer acquisition and engagement platform for small and medium-sized businesses (SMBs), leveraging the demand for artificial intelligence. Based in Saskatoon, Canada, this business-to-business software-as-a-service firm is renowned for enabling agency partners to offer sales and marketing solutions to SMBs. Vendasta now aims to provide “enterprise-grade AI automation” with its updated platform, including AI agents designed to manage customer acquisition and retention tasks, enabling SMB growth without increasing staff.
“This is the biggest leap forward in Vendasta’s history,” said CEO Brendan King. The platform promises SMBs the same constant customer engagement capabilities big brands enjoy. Initially, the AI agents include a receptionist and assistant, with plans for more “AI employees.” These agents are pre-trained, ready for customization, and use businesses’ data for accuracy.
King emphasized the necessity of AI for increased efficiency and productivity within Vendasta, employing the technology in areas like sales, billing, and support. He also noted operational benefits realized in human resources and marketing.
While many tech companies have adopted AI, sometimes leading to layoffs, Vendasta’s director of brand and experience, Nykea Behiel, stated that the company has not used AI to replace roles but instead seeks employees equipped for an AI-first world. Vendasta has raised over $192 million CAD and considered going public but paused due to reduced demand. In 2021, it secured a $119.5 million Series D and embarked on acquisitions, including firms like Broadly and CalendarHero.
In 2023, Vendasta implemented layoffs as it integrated its acquisitions, later securing $20 million in Series E financing for future acquisitions. Chief Marketing Officer Sanjay Manchada reported focus areas include software platform development, AI investments, global expansion, and leadership team development. The company became cash flow positive, and recent leadership additions include former TaskRabbit CPO John Vars and soon-to-be Chief Revenue Officer Mark Brodahl.
Currently, Vendasta serves 8.2 million SMBs through over 66,000 partners. Although no sales figures were disclosed, the company reportedly generates over $100 million CAD in annual recurring revenue. Manchada mentioned Vendasta is positioning for a “meaningful exit” but isn’t pursuing a sale or IPO actively.