11x.ai, a startup specializing in AI-powered sales development bots, has secured approximately $50 million in Series B funding, according to TechCrunch. This round was led by Andreessen Horowitz and reportedly values the company at around $350 million, as shared by multiple sources.

This latest funding comes after 11x.ai’s $24 million Series A, which was led by Benchmark and included investors like 20VC, Project A, Lux Capital, and SV Angel. Though the Series A was only recently announced, it closed earlier in 2024, with the company being valued at $90 million at the time.

Neither 11x.ai nor Andreessen Horowitz responded to requests for comments. However, Hasan Sukkar, the founder and CEO of 11x.ai, told TechCrunch that the company is nearing $10 million in annual recurring revenue (ARR). This suggests that investors valued the startup at approximately 35 times its ARR—a more modest valuation compared to other AI companies with similar revenues, such as Hebbia, which raised a Series B at 54 times ARR earlier this year.

While 11x.ai’s Series B places it ahead of competitors in terms of valuation and funding, investors mentioned that it’s still unclear if the company has gained a significant edge over its rivals. The market for AI sales development representatives (AI SDRs) is growing, with startups like Reggie.ai, AiSDR, and Artisan also working in this space. Even major players like Salesforce have launched autonomous sales agent solutions.

Some investors have expressed concerns about backing AI SDR startups due to the challenge of differentiating their offerings. However, 11x.ai’s Series B indicates that certain VCs are willing to place larger bets on the space.

Currently, 11x.ai offers two AI bots, which they call “automated digital workers.” Alice, an AI SDR, handles tasks like sales lead generation, research, and customer outreach. Jordan, their newest bot, is an AI phone sales representative that speaks over 30 languages and manages both inbound and outbound calls with potential buyers.

Last year, 11x.ai shared with TechCrunch that they were working on AI bots for talent acquisition and human resources. With the influx of new capital from their Series B round, the company may now shift focus towards expanding its lineup of digital employees beyond sales representatives, potentially developing solutions for additional business functions.