Otter.ai has secured $320 million in repayable growth financing from General Catalyst’s Customer Value Fund as the AI meeting-transcription company steps up efforts to expand its enterprise business and international presence.
Chief Executive Sam Liang said on Tuesday that the funding is structured as non-equity financing, meaning the company can access the capital without diluting existing shareholders’ stakes.
“We do need to pay them back,” Liang said, explaining that Otter would repay the fund with interest as revenue generated through sales and marketing activities grows. He added that the fund could provide additional capital after the initial amount is spent.
The company, which began as a consumer application, now has more than 40 million users. Liang said Otter aims to at least double its enterprise revenue next year, with the possibility of tripling it.
To support that ambition, the company plans to double or triple its sales and marketing budget, expand its relatively small sales team and increase promotional efforts in international markets.
The United States remains Otter’s largest market, followed by Canada, Britain and India. Its supported languages include Spanish, French, German, Japanese and Mandarin.
Although Liang declined to disclose the company’s enterprise revenue, the proportion of users who pay for its services or its specific revenue target, he described enterprise customers as its fastest-growing segment.
He said business customers tend to remain with the platform because employees use it collectively. About 86% of Fortune 500 companies already have Otter users, largely through organic adoption, and the company now wants to turn more of those users into paying customers.
Otter estimates that it has generated more than $1.5 billion in customer return on investment. The figure is based partly on surveys indicating that paying customers save at least four hours a week, as well as an analysis by a large asset manager that found returns of at least $10 for every $1 spent.
Liang said the company intends to pursue an initial public offering eventually, but wants to strengthen its enterprise revenue before taking that step.
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