Zoca Raises $6 Million to Empower Local Businesses with AI
Funding News
Artificial intelligence (AI) startup Zoca has announced a significant funding milestone, raising $6 million in a recent round led by Accel, with contributions from notable investors including GTMfund, Elevation Capital, and Better Capital.
About Zoca
Founded in 2024 by IIT Kharagpur alumni Ashish Verma and Robin Chauhan, Zoca specializes in aiding hyperlocal businesses—such as salons, spas, florists, and pet care services—in enhancing their marketing efforts through a suite of innovative AI agents. Currently, the platform is available exclusively in the United States.
Optimizing Business Growth
“Zoca’s AI agents manage the entire growth funnel for these businesses: identifying demand, optimizing their discoverability on Google Search, converting leads, and re-engaging customers,” stated Verma, co-founder and CEO of Zoca.
Utilization of Funds
The startup plans to utilize this funding to implement its go-to-market strategy in the U.S. and deploy additional AI agents. “Our vision is to transform Zoca into not just a growth platform but also an operating system for any local business,” Verma added.
Team Expansion
Zoca currently boasts a 54-member team based in Bengaluru. With this new funding, there are plans to expand the team further in the United States to support its growth initiatives.
AI Agents at Work
The AI agents developed by Zoca optimize local search rankings, send rebooking messages, and generate social media content tailored for local businesses. The startup has also introduced AI agents for managing paid advertisements and social media strategies.
Cutting-Edge Technology
These agents are trained using a variety of large language models (LLMs), including popular tools like Llama and ChatGPT. While the primary focus is on beauty and wellness businesses, Zoca has plans to eventually branch into the pet care segment.
Proven Impact
Since its inception, Zoca has partnered with over 1,000 local beauty and wellness businesses, generating over $10 million in revenue and facilitating more than 120,000 appointments.
Future Aspirations
In the coming 12 to 18 months, Zoca aims to increase its revenue tenfold, demonstrating ambitious growth plans that align with its innovative offerings.
Understanding Market Differences
Verma highlighted a notable difference between consumer behavior in India and the United States. “In India, customers often call businesses to establish trust. In contrast, U.S. consumers primarily visit the website to assess authenticity. On Google Maps, 70% of users choose the website option,” he noted.
Strategic Opportunity
This understanding of consumer preferences is where Zoca sees its opportunity, adapting its services to cater to these market dynamics.
Conclusion
Zoca’s innovative AI solution and effective market strategy position it well for future growth as it continues to provide value to local businesses in the U.S. The startup’s vision to create an operating system for local businesses reflects a progressive approach to leveraging AI technology to enhance marketing and operations.
FAQs
1. What is Zoca’s primary focus?
Zoca primarily focuses on assisting hyperlocal businesses, particularly in the beauty and wellness sectors, with their marketing needs through AI-driven solutions.
2. Who are the major investors in Zoca’s recent funding?
The funding round was led by Accel, with participation from GTMfund, Elevation Capital, and Better Capital.
3. How many local businesses has Zoca worked with so far?
Since its launch, Zoca has partnered with over 1,000 local beauty and wellness businesses.
4. What are the future plans for Zoca’s growth?
Zoca aims to increase its revenue tenfold in the next 12 to 18 months while expanding its team in the U.S.
5. What technologies do Zoca’s AI agents utilize?
Zoca’s AI agents are trained on various large language models (LLMs) such as Llama and ChatGPT, enabling them to provide effective marketing solutions.
