Canary Technologies, a San Francisco-based hotel tech company, has successfully closed an $80 million Series D funding round at a valuation of $600 million. This achievement comes despite a challenging venture capital environment for tech startups this year.
Funding Success
The funding round was led by Insight Partners, with continued investments from existing backers including F-Prime Capital, Thayer Ventures, Y-Combinator, and Commerce Ventures. According to Canary CEO Harman Singh Narula, the company wasn’t actively seeking funding when Brighton Park Capital approached them with the deal. “We hadn’t burned through much of our previous capital, but the opportunity emerged with the right investor and vision, so we moved forward,” Narula explained.
AI-Powered Solutions
Canary has been focusing on developing AI-powered products to streamline hotel operations. Recent introductions include a generative AI chatbot for guest messaging, an AI voicebot for triaging guest phone calls, and an AI chatbot for hotel websites to drive direct bookings. The company uses multiple AI models, layering its own technology and data on top. SJ Sawhney, president and co-founder, noted that the AI chatbot is answering 80% of guest messages, creating content, and making a significant daily impact.
Guest Management System Expansion
Canary’s founders envision their guest management system (GMS) as an indispensable tool for hoteliers, similar to reservation management systems. “We’re hearing from hoteliers that GMS has become a focal point in their tech stack,” Narula said. While North American hotels have led adoption, the company is now expanding globally, localizing its services for different markets. For instance, in France, the dashboard is available in French, and customer service representatives speak the language.
Future Plans
With over 20,000 hotels supported, including major chains like Best Western, Marriott, and Wyndham, Canary has doubled its revenue every year for the past few years. The company currently employs nearly 300 staff and is hiring across departments. While Canary has grown organically so far, Narula indicated that mergers and acquisitions could be considered in the future to fill specific customer needs.
Key Highlights
- Canary Technologies raised $80 million in Series D funding at a $600 million valuation.
- The company has introduced several AI-powered products to enhance hotel operations.
- Canary is expanding its guest management system globally with localized services.
- The company is open to strategic mergers and acquisitions to meet customer needs.