Tactful AI, an Egyptian-founded customer experience (CX) platform specialising in agentic AI, has successfully raised $1 million in a Pre-Series A funding round. The investment was co-led by Foras AI and M Empire, with significant participation from a group of deep-tech angel investors and the company’s founders.
The Cairo-based startup enables enterprises to move beyond traditional automation, deploying AI agents capable of resolving customer requests end-to-end within defined operational controls.
A Year of Hyper-Growth
Tactful AI has demonstrated remarkable traction over the last 12 months, achieving over 100x growth in platform usage. This surge was driven by a disciplined strategy focused on achieving product-market fit through close collaboration with a select group of enterprise customers. The company currently serves industry leaders across retail, fintech, and logistics, including Elaraby Group, Raneen, Lucky App, valU, and Bosta.
“Over the past year, we made a conscious decision to prioritise depth over speed, focusing on product–market fit and working closely with enterprise customers to solve real CX challenges,” said Mohamed Elmasry, Founder and CEO of Tactful AI. “The result was more than 100x growth in platform usage and a much clearer understanding of how Agentic AI can be applied effectively in production environments.”
Strategic Use of Capital
The new capital will be strategically deployed to fuel the company’s next phase of growth. Key focus areas include strengthening its market leadership in Egypt, validating expansion into new markets across the EMEA region, and accelerating research and development. The company plans to enhance its platform’s agentic capabilities, scalability, and third-party integrations.
This round builds on a previously announced $5 million investment in R&D, with Tactful AI now planning to double that investment over the next three years. The company is targeting a Series A round within the next 12 months.
A Story of Resilience and Founder Conviction
The funding round also marks a significant milestone in Tactful AI’s unique corporate journey. After being acquired by the European communications firm Dstny in 2022, founders Mohamed Elmasry and Mohamed Hassan completed a full management buyback, regaining control of the company.
Their participation in this Pre-Series A round, alongside prominent deep-tech founders like Omar Gabr of Luciq (formerly Instabug), Mohamed Samir of Si-Bits, and Ahmed Fakhry of Infinilink, underscores a strong collective confidence in the company’s vision and execution capabilities.
Investor Confidence
Investors were drawn to Tactful AI’s proven ability to translate complex AI into tangible business value for enterprises.
“We believe the future of customer experience will be shaped by platforms that enable speed, adaptability, and intelligent execution, not just more tools,” said Maged Ghoniema, General Partner at M Empire. “Tactful AI has demonstrated strong traction, disciplined focus on product–market fit, and a deep understanding of enterprise needs. We’re excited to support the team as they scale.”
Mohamed Aboulnaga, General Partner at Foras AI, added, “What stood out to us is Tactful AI’s ability to translate advanced AI concepts into practical, high-impact CX improvements. Their growth, enterprise adoption, and long-term commitment to R&D position them well to build a category-defining CX platform for the region and beyond.”
About Tactful AI
Founded in 2016 by Mohamed Elmasry and Mohamed Hassan, Tactful AI is a customer experience (CX) platform that empowers enterprises to transform their customer service using Agentic AI. The platform is designed to help organisations turn customer data into action, adapt quickly, and transition from traditional automation to agentic execution, where AI agents can resolve customer issues end-to-end.
Source: Wamda
