Review platform Yelp said on Jan. 22 it will acquire AI agent startup Hatch for about $300 million. That is about 12 times Hatch's $25 million in annual recurring revenue.
Yelp will pay $270 million of the purchase price in cash. The remaining $30 million will be paid in instalments over the next 2 to 3 years as employee retention incentives. The acquisition is expected to close next month.
Hatch, founded in New York in 2018, has provided an AI service on a monthly subscription basis that automates responses to customer inquiries and appointment scheduling.
Yelp plans to operate Hatch as an independent brand and integrate its services for professional service providers on its platform, including plumbers, interior contractors and restaurants. Yelp CEO Jeremy Stoppelman (제레미 스토펠만) said the AI customer service field has grown explosively since the launch of ChatGPT and that Hatch is a company that seized that opportunity.
Chi-kyu Hwang
delight@d-today.co.kr