Egyptian-born customer experience startup Tactful AI has raised $1 million in Pre-Series A funding as it looks to scale its enterprise-focused platform that uses Agentic AI to transform customer service operations. The round was co-led by Foras AI and M Empire, with participation from a group of prominent deep-tech angel investors.
The funding comes on the back of a period of exceptional growth. Over the past 12 months, Tactful AI recorded more than 100x growth in platform usage, driven by a deliberate strategy focused on product–market fit rather than rapid, unfocused expansion. The company worked closely with a small number of enterprise customers to modernise customer experience (CX) operations and deploy AI in production environments responsibly.
Agentic AI Explained
Most customer service automation today follows scripts:
If a customer says X, do Y.
Agentic AI goes further.
Instead of waiting for fixed instructions, it can understand a customer’s goal, decide what steps are needed, and complete the task end-to-end—within rules set by the business.
For example, rather than just answering a question, Agentic AI can:
- Check an order status
- Verify customer details
- Process a refund or escalation
- Close the request without human hand-offs
Think of it as the difference between a chatbot that replies and a digital agent that actually gets things done.
The key advantage is speed and adaptability. Businesses can resolve issues faster, personalise service at scale, and reduce operational costs—while still keeping humans in control of approvals, limits, and sensitive decisions.
Agentic AI doesn’t replace teams; it removes repetitive work so people can focus on complex or high-value customer interactions.
Turning Agentic AI into Enterprise-Ready CX
As customer experience becomes a key source of competitive advantage, enterprises face growing pressure to deliver faster, more personalised service at scale—without adding operational complexity or risk. At the same time, advances in artificial intelligence are dramatically lowering the cost and time required to build software, reshaping expectations across industries.
Tactful AI positions itself at the intersection of these shifts. Its platform is designed to help organisations move beyond traditional rule-based automation toward agentic execution, where AI systems can resolve customer requests end-to-end within clearly defined operational controls. Rather than adding more tools, the platform focuses on turning customer data into action, enabling teams to adapt quickly while maintaining clarity and governance.
The company already serves enterprise customers including Elaraby Group, Raneen, Lucky App, valU, and Bosta, spanning sectors such as retail, fintech, logistics, and consumer services. These deployments have allowed Tactful AI to validate its approach across multiple high-volume, high-complexity use cases.
How the Funding Will Be Used
According to the company, proceeds from the Pre-Series A round will be used to strengthen growth in Egypt, where Tactful AI has demonstrated strong enterprise traction. The startup also plans to explore and validate new regional markets across EMEA, while accelerating research and development to enhance the platform’s agentic capabilities, scalability, and integrations.
The round builds on a previously announced $5 million investment in R&D over recent years, with plans to double that investment over the next three years. Tactful AI is targeting a Series A round within the next 12 months, signalling confidence in its growth trajectory and market opportunity.
Strong Founder and Investor Conviction
In addition to Foras AI and M Empire, the round includes backing from well-known deep-tech founders and operators such as Omar Gabr, co-founder 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, underscoring their confidence in the business.
The investment follows a full management buyback completed by the founders after Tactful AI was acquired in 2022 by European communications company Dstny.
Commenting on the raise, CEO Mohamed Elmasry said the company intentionally prioritised depth over speed to understand how Agentic AI could be applied effectively in real-world CX environments. Investors echoed this view, highlighting Tactful AI’s disciplined focus, enterprise adoption, and ability to translate advanced AI concepts into practical, high-impact improvements.
As enterprises across emerging markets look to modernise customer experience without increasing risk, Tactful AI’s approach positions it as a potential category-defining CX platform for the region and beyond.
