AI language translation startup DeepL has secured an additional $300 million in funding, pushing its valuation to $2 billion. The Cologne, Germany-based company, known for its text translation and writing tools that rival Google Translate and Grammarly, plans to use the funds to enhance sales, marketing, and research and development.
The funding round, spearheaded by Index Ventures, reflects the intense interest from investors in AI startups. Despite not yet being profitable, DeepL’s valuation has doubled since January 2023 when it raised over $100 million.
DeepL’s CEO and founder, Jarek Kutylowski, highlighted the company’s organic growth and the need to expand its customer base and service offerings. Currently, DeepL serves over 100,000 businesses and organizations, a small fraction of its potential market. The new investment aims to scale this significantly.
Kutylowski emphasized the importance of developing a robust outbound sales function to complement their existing inbound approach. This shift is part of DeepL’s strategy to build stronger customer relationships and solve client-specific problems. As the company pivots towards enterprise solutions, it faces the challenge of balancing research with commercial growth.
The startup currently supports 32 languages and continues to expand its product offerings. A recent addition is DeepL Write Pro, a writing assistant tailored for business users. Notable clients include Zendesk, Nikkei, Coursera, and Deutsche Bahn.
Competition remains fierce, with major tech firms like Google, Amazon, and Microsoft also enhancing their AI-driven translation services. Additionally, emerging AI companies like OpenAI and Anthropic could potentially enter DeepL’s market space, underscoring the need for continuous innovation.
Investors such as ICONIQ Growth, Teachers’ Venture Growth, IVP, Atomico, and WiL also contributed to this funding round. Danny Rimer from Index Ventures praised DeepL’s innovative approach and the significant value it delivers to its customers, describing its success as an “open secret” in the business community.
