Tactful AI Raises $1 Million In Pre-Series A Funding

Egyptian-born customer experience (CX) platform Tactful AI has raised $1 million in a Pre-Series A funding round to accelerate the development of its agentic customer experience infrastructure. The round was co-led by Foras AI and M Empire, with participation from a group of prominent deep-tech angel investors.

Over the past year, Tactful AI has recorded more than 100x growth in platform usage, a performance the company attributes to a deliberate focus on product–market fit and close collaboration with a select group of enterprise customers. During this period, the company worked directly with large organizations to modernize customer service operations and deploy agentic AI in production environments, with an emphasis on responsible and controlled execution.

Tactful AI’s enterprise customer base includes Elaraby Group, Raneen, Lucky App, valU, and Bosta, spanning sectors such as retail, fintech, logistics, and consumer services. As customer experience increasingly becomes a key source of competitive advantage, enterprises are under pressure to deliver faster, more personalized services at scale, while avoiding added operational complexity or risk.

At the same time, rapid advances in artificial intelligence are significantly lowering the cost and time required to build software, reshaping expectations across industries. Tactful AI positions its platform at the intersection of these trends, enabling organizations to transform customer data into actionable insights, empower teams to adapt quickly, and move beyond traditional automation toward agentic execution where AI systems can resolve customer requests end-to-end within defined operational controls.

According to the company, capital from the Pre-Series A round will be used to strengthen growth in the Egyptian market, where it has already demonstrated strong enterprise traction, while also exploring and validating new regional markets across EMEA. The funding will further support research and development efforts aimed at enhancing the platform’s agentic capabilities, scalability, and integrations.

This investment follows a previously announced $5 million commitment to research and development over recent years, with plans to double that investment over the next three years. Tactful AI is also targeting a Series A round within the next 12 months.

In addition to Foras AI and M Empire, the round attracted investments from several well-known deep-tech founders and operators, including Omar Gabr, co-founder of Luciq (formerly Instabug), Mohamed Samir, founder of Si-Bits, and Ahmed Fakhry, co-founder of Infinilink. Company founders Mohamed Elmasry and Mohamed Hassan also participated in the round, underscoring internal confidence in the company’s strategy and execution.

The founders previously completed a full management buyback of Tactful AI after it was acquired in 2022 by European communications company Dstny.

Commenting on the milestone, Mohamed Elmasry, Founder and CEO of Tactful AI, said the company had made a conscious decision over the past year to prioritize depth over speed. “By focusing on product–market fit and working closely with enterprise customers to solve real CX challenges, we achieved more than 100x growth in platform usage and gained a much clearer understanding of how agentic AI can be applied effectively in production environments,” he said. “This round gives us the fuel to scale that impact, starting with Egypt, expanding regionally, and continuing to invest heavily in R&D.”

Maged Ghoniema, General Partner at M Empire, noted that the future of customer experience will be shaped by platforms that enable speed, adaptability, and intelligent execution. “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,” he said.

Mohamed Aboulnaga, General Partner at Foras AI, added that Tactful AI stood out for its 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 customer experience platform for the region and beyond,” he said.