By Akash Sriram
Oct 20 (Reuters) - AI meeting-transcription company Otter.ai said on Tuesday it had closed $320 million in growth financing from General Catalyst's Customer Value Fund to expand its enterprise business and international reach.
The financing is repayable rather than equity, avoiding shareholder dilution, CEO Sam Liang told Reuters. Otter, which began as a consumer app and now has more than 40 million users, aims to at least double its enterprise revenue next year.
"We do need to pay them
back," Liang said, adding that Otter would repay the fund with interest as sales and marketing spending generates revenue. He said the fund could provide more capital once the initial amount is spent.
Liang said Otter plans to double or triple its sales and marketing budget, grow its small sales team and market more heavily abroad. The US is its biggest market, followed by Canada, Britain and India. The company now supports languages including Spanish, French, German, Japanese and Mandarin.
The CEO declined to disclose enterprise revenue, the share of users who pay, or the company's target. He said enterprise is Otter's fastest-growing segment and that he hopes to triple its revenue next year.
Liang said enterprise customers are more likely to stick with the product because teams use it collectively. About 86% of Fortune 500 companies already have Otter users, mostly through organic adoption, and the company aims to convert them into paying customers, he added.
Otter said it has generated more than $1.5 billion in customer return on investment. The estimate draws on user surveys, which found paying customers regain at least four hours a week. It also draws on an analysis by a large asset manager, which found a return of at least $10 per $1 spent.
Otter plans an eventual initial public offering, Liang said, but wants to build more enterprise revenue first.
(Reporting by Akash Sriram in Bengaluru and Krystal Hu in San Francisco; Editing by Tasim Zahid)
