Coinbase Acquires Agara, An AI-Powered Customer Support And Experience Platform, For $40–50M

With the acquisition, Coinbase will be able to enhance its support services. Here are the top-line bullets you need to know.

Coinbase, a crypto exchange platform, has acquired Agara Labs, an AI-powered customer support and experience platform, for $40–50M. The deal is expected to close by the end of 2021.

Who are the parties to the deal?

Agara Labs: California-based Agara Labs’ platform enables enterprises to initiate human-like conversations with their customers and automate their support operations. The company has developed over 100 integrations with platforms like Salesforce, Shopify, and Genesis, and it has processed over 3.1M voice conversations to date. Agara Labs caters to over 200 global brands, including Olay, Ariel, Gillette, Oral-B, and Braun. It currently employs 40 people and maintains operations in India and the US.
Coinbase: California-based Coinbase operates a crypto exchange platform to facilitate the trading of digital currencies, such as bitcoin, litecoin, and ethereum. The company has over 73M registered users on its platform that collectively represent more than 100 countries. It has $255B in assets on the platform and sees $327B traded each quarter. Coinbase has increased its employee count by 5x over the past few months to reach 2,700 people.

Source: Agara

Why does the market matter?

The global conversational AI market is projected to grow at a CAGR of 20% and reach a value of $32.6B by 2030, according to Allied Market Research.
The increase in demand for AI-driven chatbots and customer support services alongside the implementation of omnichannel methods is likely to fuel market growth.
In a study published by Juniper Research, AI-powered chatbots will likely handle 75–90% of healthcare and banking queries by 2022.