Yellow.ai handles 16 billion conversations a year for more than 650 enterprise clients across 85 countries and 135 languages. The company behind that automation now plans to go public through a merger with Bluerock Acquisition Corp., a Nasdaq-listed blank-check firm, in a deal with roughly $550 million of pro forma equity value.
The agreement, announced August 3, puts the combined company on the Nasdaq Capital Market under the ticker YAI. Yellow.ai arrives with a pre-money valuation of about $300 million, and the transaction is expected to deliver more than $200 million in gross proceeds: roughly $175 million sitting in Bluerock’s trust account plus $30 million of committed private placement financing that includes capital from Yellow.ai’s own founders.
The company, founded in 2016 by Raghu Ravinutala, Rashid Khan and Jaya Kishore Reddy, turns enterprise service procedures into AI agents that plan a task, act on it across connected systems, and close it out. It booked over $34 million of unaudited revenue in its last fiscal year and has raised $103 million to date from Lightspeed, Salesforce Ventures, Sapphire Ventures and WestBridge Capital.
Proceeds are earmarked for the agent platform, enterprise sales in North America and Europe, and acquisitions of business process outsourcing operators, which Yellow.ai intends to rebuild around its own software. Bluerock’s shareholders have yet to vote on the deal.
