Artificial intelligence is rapidly transforming customer support, and South African startup Cue wants to lead that shift. The company has secured fresh funding to expand its AI-powered customer service platform, betting that businesses are ready to move beyond basic chatbots to fully autonomous AI agents.
South African customer service software startup Cue has raised $5 million in a funding round to accelerate the development of its AI-powered customer service platform. The investment was co-led by Knife Capital and FAM Investments, with the company planning to use the funds to strengthen its product, expand internationally and enhance its AI capabilities.
Founded in 2015, Cue helps businesses manage customer conversations across WhatsApp, live chat and social media platforms. Today, the platform serves more than 500 companies in South Africa and the United Kingdom, helping businesses respond to customer enquiries more efficiently while reducing support costs. The company believes customer service is entering a new era.
Rather than simply answering questions, Cue’s latest AI agents can resolve complete customer requests from start to finish without human intervention. These agents can process routine tasks, personalise responses and transfer more complex conversations to human support teams when necessary.
Chief Executive Officer Richard Nischk said businesses are increasingly looking for unified customer service platforms instead of relying on multiple disconnected tools.
According to him, many companies now recognise that artificial intelligence works best when combined with human support rather than replacing it entirely. Cue describes its strategy as “automation first, but never automation only.” The startup has experienced rapid growth.
According to the company, its annual recurring revenue grew by more than 160% over the past year. Its platform now manages more than 500 million customer conversations every year, while its AI agents already resolve over 60% of customer interactions without requiring human assistance. The fresh funding will support several key areas.
Cue plans to build a second generation of AI agents, invest more heavily in voice technology, strengthen security features, expand enterprise integrations and grow its sales and marketing teams across both South Africa and the UK.
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Investors believe the company is well positioned to benefit from one of enterprise software’s fastest-growing markets. Knife Capital said customer service remains one of the most important functions in any business and believes companies that use AI to improve human productivity—not replace people entirely—will create the greatest long-term value. Cue’s funding also reflects a broader trend across Africa’s startup ecosystem.
Investors are increasingly backing companies that build practical AI applications capable of solving everyday business problems instead of focusing solely on experimental technologies. Customer support, financial services, healthcare and logistics have all become major areas for AI adoption across the continent.
As more businesses embrace artificial intelligence, expectations are changing. Customers no longer want to wait hours or even minutes for answers. They expect fast, personalised support across every communication channel. For startups like Cue, that shift represents a major opportunity. The race to build the smartest AI assistant is no longer limited to Silicon Valley.
African startups are increasingly proving they can compete by solving real business challenges with practical, scalable technology.
About the Author
Marcel Chidozie is a tech analyst and writer covering foreign news, fintech, and emerging technologies at TechRegard. Based in Nigeria, He's passionate about translating complex tech developments into compelling, accessible stories for diverse audiences. His work focuses on how technology shapes innovation across Africa and globally.
