ElevenLabs begins $100M employee tender at $6.6B valuation

Voice AI firm ElevenLabs is carrying out a $100-million employee tender offer at a $6.6 billion valuation to give staff access to liquidity while strengthening their long-term commitment as the company scales.

The transaction is being led by existing backers Sequoia Capital and ICONIQ Growth, with participation from Andreessen Horowitz, Smash Capital, World Innovation Lab, and others. 

Founded in 2022, ElevenLabs has experienced growth in both revenue and customer adoption. The firm clocked more than $200 million in annual recurring revenue earlier this year and expects its earnings to exceed $300 million by the end of 2025. Enterprise revenue has risen by more than 200% in the past year, it said.

The company’s conversational AI agents platform has enabled the creation of more than two million agents for use across websites, applications, and phone services, with applications spanning customer support, scheduling, education, and entertainment, it noted. Its creative platform has also introduced new technologies, including the Eleven v3 text-to-speech model and Eleven Music, which generates studio-quality tracks from written prompts.

ElevenLabs’ workforce has grown in the past twelve months, increasing to more than 330 from around 70 employees. 

Co-founder Mati Staniszewski said the company’s progress has been fuelled by both strong investor support and a growing team, adding that voice technology is set to become a central interface for human-computer interaction.

The company counts Cisco, Epic Games, Adobe, and NVIDIA among its global clients. India has become one of its most important growth markets, with a local team working with companies such as Meesho, Apna, 99acres, TVS Motors, Mahindra, and PocketFM. 

Adoption in the country has been strong across industries, including technology, automotive, media, and entertainment, prompting the firm to expand its local operations further.