A private equity consortium has taken a majority stake in AI MarTech Phrasee.

The London company helps companies with their marketing language and was shortlisted for our MarTech 50 innovation ranking, due to be announced on Monday 21st March.

capital D was joined by investment funds managed by Morgan Stanley Expansion Capital, together with a group formed by Keyhaven Capital Partners and family offices.

The consortium has acquired a 64% stake in Phrasee, with the founders and management holding the remainder.

Founded in 2015, Phrasee is disrupting the traditional role of the human copywriter and marketer, using data science and a natural language generation engine to generate, automate and optimise marketing language in real-time.

The platform aims to optimise email, SMS, web and social media campaigns by providing AI-generated optimised and brand safe language to clients, driving higher open and click-through rates, and sales.

Phrasee’s clients are typically large, well-known enterprises across multiple business sectors in the United States and Europe.

50 female entrepreneurs to watch in 2022

“Our technology delivers millions in incremental revenue, and we are proud to call some of the world’s most recognised brands Phrasee customers,” said Parry Malm, CEO.

“The capital D team brings incredible sector knowledge across AI and machine learning as well as an outstanding commercial network, which we’ve already seen in action during our short time working together. 

“We plan to continue disrupting the way companies communicate with and market to customers across all their digital channels, and it’s awesome to have partnered with capital D on the next stage of our journey.”

The investment will support Phrasee’s further expansion in the US, a market already responsible for more than 60% of its sales.