Egyptian-born startup Tactful AI has raised $1 million in Pre-Series A funding to expand its agentic AI-powered customer experience platform across Egypt and the wider EMEA region.
As enterprises look beyond chatbots toward AI systems that can act—not just respond—Tactful AI is positioning itself at the infrastructure layer of customer experience.
Tactful AI has raised $1 million in a Pre-Series A funding round to accelerate the development of its agentic customer experience (CX) platform. The round was co-led by Foras AI and M Empire, with participation from a group of regional deep-tech angel investors.
The funding comes after a year of rapid operational growth, during which the company reports more than 100x expansion in platform usage.
From automation to agentic execution
Customer experience software is undergoing a structural shift. Traditional automation—rules-based workflows, scripted bots, and ticket routing—is increasingly seen as insufficient for enterprises under pressure to personalize interactions while controlling cost and risk.
Tactful AI is betting on “agentic” execution: AI systems that can resolve customer requests end-to-end within defined operational constraints, rather than merely assisting human agents.
Its platform is designed to unify customer data, enable rapid iteration by CX teams, and deploy AI capabilities in production environments without adding layers of operational complexity.
Depth over speed
Rather than pursuing rapid customer acquisition, Tactful AI spent the past year working closely with a limited number of enterprise clients to refine product–market fit.
The company currently serves organizations including Elaraby Group, Raneen, Lucky App, valU, and Bosta, spanning retail, fintech, logistics, and consumer services. That enterprise focus reflects a deliberate strategy to validate agentic AI in real-world, high-volume customer operations.
According to founder and CEO Mohamed Elmasry, the approach was intentional. The company prioritized understanding where agentic AI genuinely adds value—and where human oversight remains essential—before scaling.
Where the money will go
Capital from the round will be used to deepen Tactful AI’s presence in Egypt, where it has already established enterprise traction, while exploring additional markets across Europe, the Middle East, and Africa.
The company also plans to accelerate research and development, enhancing the platform’s scalability, integrations, and agentic capabilities. The new funding builds on a previously announced $5 million R&D investment made over recent years, with plans to double that figure over the next three years.
Tactful AI is targeting a Series A round within the next 12 months.
A founder-led reset
The company’s current trajectory follows a significant structural reset. Tactful AI was acquired in 2022 by European communications firm Dstny before its founders completed a full management buyback, returning the company to independent control.
Several experienced technology founders participated in the new round, including Omar Gabr of Luciq, Mohamed Samir of Si-Bits, and Ahmed Fakhry of Infinilink, alongside continued investment from the company’s founding team.
Why investors are paying attention
For investors, the appeal lies less in headline growth and more in positioning. As AI reduces the cost of building software, differentiation is shifting toward execution, integration, and operational trust—particularly in enterprise environments.
Backers argue that Tactful AI has shown an ability to translate advanced AI concepts into practical CX outcomes, while maintaining a disciplined focus on governance and production readiness.
In a crowded AI landscape, that restraint may prove to be a competitive advantage.
As customer experience becomes a durable source of differentiation rather than a cost center, platforms that can combine speed, adaptability, and control are likely to shape the next phase of enterprise AI adoption.
