DeepL secures $300m investment, valuation reaches $2 billion

DeepL, a prominent Language AI company, has secured a substantial $300 million investment, bringing its valuation to $2 billion. The investment round was spearheaded by Index Ventures and saw participation from ICONIQ Growth, Teachers Venture Growth, and other late-stage investors, as well as existing supporters IVP, Atomico, and WiL.

DeepL's founder and CEO, Jarek Kutylowski, highlighted the significance of the funding, noting that it comes at a pivotal moment as more businesses discern between mere hype and genuinely effective AI solutions. Kutylowski stated, "This new investment comes during what is on track to be DeepL's most transformative year yet and is a testament to the crucial role that our Language AI platform has in solving the complex linguistic challenges global companies face today."

Founded in 2017, DeepL has rapidly expanded its reach, now serving over 100,000 businesses, governments, and organisations worldwide. Notable clients include Zendesk, Nikkei, Coursera, and Deutsche Bahn. These organisations rely on DeepL's enterprise-grade Language AI platform to enhance communication, drive international growth, and achieve cost savings.

DeepL recently opened its first office in the United States, marking the region as its third-largest market. The company is also expanding its language offerings, adding Arabic, Korean, and Norwegian to its platform, which now covers 32 languages.

April 2024 saw the launch of DeepL Write Pro, a business-focused writing assistant powered by proprietary LLM technology. This move was part of a broader strategy to tailor products specifically for business use, addressing a range of communication needs from internal messaging to customer support and market expansion.

Danny Rimer of Index Ventures, who led the investment, commented on DeepL's success. "DeepL's runaway success is a bit of an 'open secret' in the business community. The company is exceptionally thoughtful about creating cutting-edge AI products that deliver real and immediate value to their customers."

The investment landscape underscores the growing demand for AI solutions. A recent IBM study found that 42% of global enterprises are actively deploying AI, while 40% are exploring its potential. DeepL is at the forefront of this trend, applying AI to transform the $67.9 billion language industry, projected to grow to $95.3 billion by 2028.

Specialised AI models set DeepL apart from general-purpose AI systems, offering more precise translations and reducing the risk of errors. These specialised solutions are crucial for business translation and writing, where accuracy is paramount.

A 2024 Forrester study highlighted the efficacy of DeepL's platform, revealing a 345% ROI for global companies. The study also noted a 90% reduction in translation time and a 50% decrease in workload, demonstrating the platform's ability to drive significant cost savings and operational efficiencies.

Adrian McDermott, CTO of Zendesk, praised DeepL's impact. "The ability to have accurate AI translation allows companies from startups to large enterprises the ability to scale globally, reaching prospects and existing customers in new ways."

Looking ahead, DeepL plans to continue investing in research and product innovation to strengthen its suite of AI communication tools. The company is also focused on global market expansion and talent recruitment across various domains, including AI research, product development, engineering, and go-to-market strategies.