DeepL, the Cologne-based AI translation company, has successfully raised $300 million (approximately €277 million) at a $2 billion valuation. The investment round was led by Index Ventures, with participation from ICONIQ Growth, Teachers’ Venture Growth, and other late-stage investors, alongside existing supporters IVP, Atomico, and WiL.
DeepL plans to use the newly acquired funds to boost research and product innovation, enhancing its suite of AI communication tools designed for business applications. The company also aims to expand its global market presence and recruit talent across AI research, product development, engineering, and go-to-market (GTM) strategies.
“We’re at a pivotal moment in the AI industry where businesses are beginning to distinguish between mere hype and solutions that provide secure, practical benefits,” said Jarek Kutylowski, founder and CEO. “This investment marks a transformative year for us, underscoring the crucial role our Language AI platform plays in addressing complex linguistic challenges for global companies. Our focus remains on growth and innovation to maintain industry leadership in quality, precision, and security.”
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Growing Client Base and Product Offerings
The company has experienced significant growth, now serving over 100,000 businesses, governments, and organizations worldwide, including prominent names like Zendesk, Nikkei, Coursera, and Deutsche Bahn. The company expanded its operations in the US earlier this year, making it DeepL’s third-largest market.
In April 2024, the AI company launched DeepL Write Pro, a business writing assistant powered by its proprietary large language model (LLM) technology. The platform also added support for new languages, including Arabic, Korean, and Norwegian, bringing the total to 32 languages.
Company Background and Market Impact
Founded in 2017 by Jaroslaw Kutylowski, DeepL is renowned for its highly accurate AI translation and writing tools, such as DeepL Translator and DeepL Write. These tools help businesses overcome language barriers and improve communication with enterprise-level security and innovative technology.
The firm’s specialized AI models are specifically tuned for language applications, resulting in more precise translations and a reduced risk of errors. A 2024 Forrester study highlighted that using DeepL led to a 345% return on investment (ROI) for global companies, cutting translation time by 90% and reducing workloads by 50%.
Currently, the platform is trusted by millions of individuals and over 100,000 organizations in 63 countries. The company employs more than 900 people.
Investor Insights
Index Ventures, known for partnering with transformative businesses, led the investment. Danny Rimer, who spearheaded the investment from Index Ventures, praised DeepL’s success, noting the company’s thoughtful approach to creating AI products that deliver immediate value. “DeepL’s industry-leading translation capabilities are crucial for companies looking to scale globally,” added Adrian McDermott, CTO of Zendesk.
With this significant investment, the german unicorn is set to continue its rapid growth, driving advancements in AI translation and writing solutions to support businesses worldwide.
