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Synthesia Reaches $2.1 Billion Valuation After $180 Million Fundraise

Synthesia, a UK-based AI video avatar platform, announced on Wednesday that it has successfully raised $180 million in its latest funding round, led by venture capital firm NEA. This round pushes the company’s valuation to $2.1 billion, making it the most valuable generative AI media company in the UK, according to Dealroom data. This marks a significant increase from its $1 billion valuation in June 2023.

Synthesia’s cutting-edge technology enables businesses to create custom AI avatars for instructional and corporate videos. With over 60,000 customers, the company counts major players like Zoom Communications, Heineken, Inter IKEA Group, and more than 60% of the Fortune 100 companies among its clients.

The AI sector, fueled by the success of OpenAI’s ChatGPT, has attracted significant venture capital, with AI startups accounting for over 25% of European venture capital last year. Synthesia’s Series D round saw new investors such as Atlassian Ventures and PSP Growth join existing backers GV and MMC Ventures. This brings Synthesia’s total capital raised to over $330 million.

The company plans to use the funding to support its expansion efforts in North America, Europe, Japan, and Australia. With over 400 employees across seven countries, including offices in Denmark, Germany, and the U.S., Synthesia is well-positioned to capitalize on the growing AI video avatar market, competing with other startups such as Colossyan, HeyGen, and Veed.

 

Tech Mahindra Focuses on Expanding BFSI Segment to Close Gap with Larger Rivals

Tech Mahindra, India’s fifth-largest software services exporter, is intensifying its efforts in the banking, financial services, and insurance (BFSI) sector to bridge the revenue gap with its larger competitors. CEO Mohit Joshi, who took charge in December 2023 after two decades at Infosys, aims to increase the contribution of BFSI to Tech Mahindra’s total revenue from 16% to 25% by March 2027.

Focus on BFSI Expansion

Joshi acknowledges that while the company has historically relied on telecom clients for revenue, the BFSI sector represents a more lucrative and growing opportunity. India’s $254 billion IT sector sees some peers generate as much as a third of their revenue from BFSI, and Joshi intends to ensure Tech Mahindra captures a larger share of this market. “We still have a lot of room to catch up,” he noted.

Targeting Core Banking and Insurance Services

Tech Mahindra will focus on key segments within BFSI, including core banking, payments, asset and wealth management, custodian services, and insurance. These areas are among the largest technology spenders, with large banks spending over $10 billion annually on tech services, making it a crucial area of growth for Tech Mahindra. Joshi’s leadership has already strengthened the company’s BFSI division to tap into these opportunities.

Role of Generative AI in BFSI

Joshi views generative artificial intelligence (GenAI) as an enabler rather than a threat to the tech services sector. He believes that AI will increase the demand for technology services, especially in sectors like BFSI, rather than diminishing the need for developers. “GenAI is the best spokesperson for why we need more money to be spent on technology,” Joshi said, adding that the demand for developers will continue to grow due to the increased complexity of tasks.

Human Element in Customer Service

While some fear AI could replace human roles in customer service, Joshi remains skeptical about a widespread shift to AI-driven contact centers. He emphasized that for critical issues, customers will still prefer human interaction over AI solutions.

 

Dexcom Introduces AI-Powered Reports for Stelo Glucose Monitor, Offering Personalized Insights

Dexcom has launched a new artificial intelligence feature for its Stelo continuous glucose monitor (CGM), giving users a more personalized view of how their meals, sleep, and activities affect their glucose levels. This AI-driven addition, which debuted on Tuesday, is part of Dexcom’s broader efforts to enhance user engagement and provide deeper insights into glucose management.

Stelo, an over-the-counter CGM that monitors real-time blood sugar levels by inserting a small sensor under the skin, was first introduced in August. Unlike traditional CGMs, Stelo is designed for adults who do not take insulin, opening up a new consumer market for the company. This latest feature aims to make Stelo more valuable and personalized for everyday users, with Dexcom focusing on enhancing its capabilities for a broader audience.

Jake Leach, Dexcom’s chief operating officer, emphasized that user feedback had driven the company’s decision to integrate more advanced AI features. “The No. 1 feedback we get is users want to see more,” Leach explained in an interview with CNBC. “They’re making an investment and wearing the product, and they want to be able to take the most advantage of all the data that they’re generating.” The new AI-generated reports reflect this need for deeper, actionable insights.

Dexcom is leveraging Google Cloud’s Vertex AI platform and its Gemini models to build the new AI features. These tools enable developers to synthesize diverse data types, a complex task in healthcare. The company is proceeding cautiously, ensuring the AI platform adds value without compromising the reliability of its core CGM products, which are essential for managing serious health conditions.

While Stelo users have always had access to weekly insights reports, these reports were traditionally formatted in a standard template. The new AI-powered version promises to offer a more personalized experience, drawing on individual user data to provide tailored feedback. For example, if a user’s activity level is low after meals, the report will include specific recommendations to help improve glucose management.

It is important to note that while the AI feature offers personalized insights, it does not provide medical advice. Dexcom has developed the feature with guidance from the U.S. Food and Drug Administration’s (FDA) AI framework. The FDA approved Stelo for use in March, and the company is now looking at expanding the use of generative AI across its other CGM products.

Looking forward, Dexcom plans to evolve its AI capabilities to provide real-time feedback rather than just weekly summaries. The company also envisions using the AI platform to predict potential issues before they arise, much like a “check engine light” in a car, providing early warnings and suggestions for further consultation with healthcare providers.

Chris Sakalosky, vice president of strategic industries at Google Cloud, noted the potential for the technology to offer predictive insights. “It gives you a sense for what could be going on, and recommendations of where you might want to go to seek more advice,” Sakalosky said.

The updated AI-powered reports are already rolling out to Stelo users this week, marking an important step in Dexcom’s mission to make glucose monitoring more intuitive and informative for consumers.