Yoodli, an AI-driven communication training startup, has achieved a valuation exceeding $300 million — over three times its value from six months prior — as it develops technology intended to support individuals rather than replace them with automation.

The increased valuation follows Yoodli’s $40 million Series B funding round, spearheaded by WestBridge Capital with contributions from Neotribe and Madrona. This comes after a $13.7 million Series A round announced in May, elevating the startup’s overall funding to almost $60 million.

As AI technologies proliferate in the workplace and provoke concerns about automation, Yoodli distinguishes its approach. The four-year-old startup based in Seattle employs AI to facilitate simulated scenarios — ranging from sales calls and leadership coaching to interviews and feedback sessions — providing users with structured, repeatable exercises aimed at enhancing their speaking abilities.

Varun Puri (depicted above, right), who previously worked in Google’s X division and took on special projects for Sergey Brin, co-founded Yoodli alongside former Apple engineer Esha Joshi (shown above, left) in 2021. Puri recognized communication obstacles after relocating to the U.S. at 18 and witnessing how challenges in articulating thoughts or speaking with confidence impacted students and young professionals from countries like India — himself included — as he shared in an interview.

Originally, Yoodli aimed to assist individuals in honing their public speaking — a skill that two out of three people find difficult, according to internal data shared by Puri with TechCrunch. However, the startup quickly noticed users utilizing the platform for interview preparation, sales presentations, and tough conversations. This transition prompted Yoodli to evolve from a consumer-focused application to enterprise training, now providing AI role-playing and experiential learning resources for market entry enablement, partner certification, and management coaching.

“In the past, businesses would use static, lengthy content or passive videos for training that we’d all rush through at 4x-5x speed just to finish,” Puri remarked. “However, that doesn’t guarantee actual learning.”

Organizations like Google, Snowflake, Databricks, RingCentral, and Sandler Sales utilize Yoodli for training employees or partners. The startup also licenses its platform to coaching agencies like Franklin Covey and LHH, which can adapt the system to suit their methodologies and training frameworks, as stated by Puri. He emphasized that the tool isn’t intended to supplant human coaches but rather to ensure that a human contributes personalized guidance.

“I fundamentally believe that AI can elevate you, let’s say, from a zero to an eight or even a nine,” Puri noted. “Nevertheless, the genuine essence of who you are, how you present yourself, and the authenticity and vulnerability that human feedback encapsulates will always remain present.”

The platform integrates with multiple large language models, enabling users to operate it with options like Google’s Gemini or OpenAI’s GPT based on their preferences. Enterprises can also incorporate it into their existing software, or users can access it directly via a web browser. The AI accommodates most major languages, including Korean, Japanese, French, Canadian French, and various Indian languages.

Yoodli does not provide a dedicated mobile application, a decision made by Puri to avoid introducing unnecessary steps for users during their training sessions.

Puri did not specify the number of users on the platform but mentioned that most of Yoodli’s revenue now originates from enterprise clients. He reported that between the Series A and B funding rounds, Yoodli observed a 50% rise in the quantity of role-plays conducted on the platform, as well as the total duration users engaged in practice. The startup also highlighted a 900% growth in its average recurring revenue over the past year, although specific numbers were not disclosed.

Yoodli had not intended to secure additional funding so soon after its previous round but encountered unexpected interest from investors, with WestBridge leading the recent fundraising, according to Puri. He indicated that strong performance metrics, notable clients, and important hires were attractive to investors. The startup has recently brought on board former Tableau and Salesforce executive Josh Vitello as chief revenue officer (CRO), former Remitly CFO Andy Larson as CFO, and former Tableau chief product officer (CPO) Padmashree Koneti as CPO.

Yoodli is not the only player in the market for AI-driven communication tools, yet Puri conveyed to TechCrunch that the startup sets itself apart through significant customization and a focus on particular training niches, enabling companies to adapt the system to their specific requirements and coaching styles.

The Seattle-based startup employs approximately 40 individuals. Puri shared that the latest investment will be allocated to enhancing Yoodli’s AI coaching, analytics, and personalization features, as well as to expanding its footprint in corporate learning and professional development. The company is also planning to recruit talent in product development, AI research, and customer success, while broadening its reach within the Asia-Pacific markets and strengthening its presence in the U.S.