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Luzia lands $10 million in funding to expand its WhatsApp-based chatbot

The availability of Large Language Models (LLMs) has simplified the development of chatbots. Notable companies like OpenAI, Google, and Microsoft have made their chatbots, such as ChatGPT, Bard, and Bing Chat, widely accessible. However, some individuals who are not deeply involved in technology may remain unaware of these bots. A Spanish-based company called Luzia is striving to introduce AI chatbot technology to users through a WhatsApp-based bot.

Founded in 2023 by Álvaro Martínez Higes, Javier Andrés, and Carlos Pérez, Luzia aims to cater to the Spanish and Portuguese-speaking chatbot market. Using Luzia is quite straightforward. You can save the chatbot as a contact on your mobile phone and initiate conversations with it via WhatsApp or Telegram.

The startup has reported that more than 17 million users have interacted with Luzia so far, with 8 million of them engaging on a monthly basis. While it didn’t specify its daily active users, the startup mentioned that it receives 13 million daily requests.

Martínez Higes informed TechCrunch that most people share Luzia’s contact with their friends to engage with the bot.

Luzia employs your phone number to determine your location, and it starts conversations in Spanish or Portuguese accordingly. As the company expands into the U.S., Luzia will offer conversations in English, but if you communicate with it in Spanish, it will default to Spanish. However, thanks to its GPT technology, it can also converse in other languages.

Currently, Luzia is compatible with users in Brazil, Argentina, Colombia, Spain, Mexico, and now the United States.

The objective is to introduce Luzia to users who might not be familiar with AI models. The company noted that many first-time users liken the bot to voice assistants like Siri or Alexa. Although the app provides a basic onboarding message with some use cases, the startup is not actively sending educational messages to inform users about various features.

Luzia utilizes a combination of models, including GPT 3.5/4, Llama, and Kandinsky, to power interactions. Like any other chatbot, users can request Luzia to generate text for emails or answer questions. They can also forward voice notes or audio files for the bot to transcribe. Furthermore, Luzia can generate images based on given prompts.

Luzia recently secured $10 million in Series A funding, with Khosla Ventures leading the investment. Other investors, such as Pao Gasol, a Basketball Hall of Famer, A* Capital, Abstract Ventures, FJ Labs, Globo Venture, Mike Santos of Technisys, Sean Ryan of Sean Investments LTD, and Grupo Product, also participated. Prior to this round, the company had raised $3 million.

For now, the company is offering its bot for free and focusing on expansion and delivering value to users.

Álvaro Martínez Higes stated, “We have seen monetization tools like unlocking unlimited messages, long-length transcriptions, and giving access to better models through paid plans. But those are quickly becoming commoditized in the industry. If we would have gone with that route, we would have been dead.”

Adina Tecklu, a partner at Khosla Ventures, believes that Luzia is well-positioned to address the personal assistant market. She added that addressing the Latin American and Iberian Peninsula market represents a significant opportunity.

She mentioned, “I have been looking at this space for some time — how can AI truly power consumer interactions. In Luzia, we saw a strong team with a very deep understanding of their consumer base resulting in exciting early traction. Their product is truly resonating with Spanish and Portuguese consumers, and having such early user traction is impressive.”

This year, Khosla Ventures has invested in multiple startups working on AI and LLM technology, including the reading coach app Ello and the conversational learning app Quazel.

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