Exclusive: a16z and Sequoia-backed AI startup Cresta hits $100M ARR
Illustration: Aïda Amer/Axios
Cresta, a customer service AI company, hit over $100 million in annual recurring revenue, the startup tells Axios exclusively.
Why it matters: Customer service is considered one of the prime areas for near-term AI disruption.
Driving the news: The company has more than doubled its recurring revenue of $47 million at the end of April 2025, says CEO Ping Wu.
- Cresta plans to more than double the figure again this year, and is on track to hit or surpass it, says Wu.
How it works: Sunnyvale, Calif.-based Cresta is billed as a companion to service agents, rather than a replacement.
- Cresta's AI agent can automate routine tasks like rebooking someone for a flight, and its customers include United Airlines, CVS, and Marriott.
- Its agent also gives human agents potential responses and coaching through calls.
Follow the money: Cresta was last valued at $1.6 billion in 2022, and it raised a $125 million round in late 2024, but did not disclose that valuation.
- It's backed by investors including Tiger Global, Andreessen Horowitz, Greylock Partners, Sequoia Capital, QIA, and Porsche.
State of play: Another player in the space, Sierra, raised at a $10 billion valuation last year. In January, Decagon raised at a $4.5 billion valuation.
- Google, where Wu cofounded its contact center AI initiative, is also a player, most recently announcing work with Humana.
Zoom in: Cresta is also announcing that former Workday CEO Carl Eschenbach, who rejoined Sequoia Capital as a partner, is now on its board.
- Sequoia's Doug Leone, who was previously on the board, is now chairman.
