Arab Finance: Egyptian-born customer experience technology company Tactful AI has concluded $1 million in pre-Series A funding as it looks to expand its operations in Egypt, enter additional markets across Europe, the Middle East, and Africa (EMEA), and continue developing its agentic AI platform.
The round was co-led by Foras AI and M Empire, alongside participation from a group of deep-tech investors, including Omar Gabr of Luciq, formerly Instabug, Mohamed Samir of Si-Bits, and Ahmed Fakhry of Infinilink. The company's founders, Mohamed Elmasry and Mohamed Hassan, also participated in the round.
The funding follows a management buyback completed by the founders after the company had been acquired in 2022 by Dstny, returning Tactful AI to founder ownership as it continues to develop its customer experience software business.
Founded in 2016, the company develops customer experience software used by enterprises across sectors, including retail, financial services, logistics, and consumer services. Its customer base includes Elaraby Group, Raneen, Lucky, valU, and Bosta.
The investment comes as businesses increasingly seek ways to manage larger volumes of customer interactions while integrating artificial intelligence into customer service operations. Tactful AI's platform is designed to support that shift by enabling organizations to move beyond rule-based automation toward systems in which AI agents can handle customer requests within defined business controls.
According to the company, the new capital will be directed toward expanding its presence in Egypt, assessing new opportunities across EMEA, and increasing investment in research and development focused on platform integrations, scalability, and agentic AI capabilities.
The raise builds on previous investments made by the company in product development. Tactful AI said it has invested approximately $5 million in research and development over recent years and plans to increase that spending over the next three years. The company is also targeting a Series A funding round within the coming 12 months.
