Israeli AI Startup Bites Secures $40 Million for Employee Training Platform

Israeli startup Bites has successfully raised $40 million in a Series A funding round, bringing its total investment to $55 million. The company utilizes artificial intelligence to create personalized training content for frontline workers, such as waiters, cashiers, and construction workers, in various industries worldwide. The platform aims to shorten onboarding times and improve job performance by delivering training in the employee's native language and the company's brand voice.

Founded by Eran Hefetz, who previously owned several popular Tel Aviv restaurants, Bites was born out of the challenges of training a diverse, multilingual workforce. The AI engine transforms company procedures, documents, or ideas into short, engaging video lessons, similar to TikTok, which are delivered directly to employees' phones via platforms like WhatsApp and Teams, without requiring app downloads or logins. The system also includes an "Ask-AI" feature for instant access to job-related information.

Bites' technology integrates with a company's sales, customer management, and HR systems. By analyzing business data and employee interactions with training materials, the AI can identify performance dips and automatically generate targeted training to address specific gaps, measuring the impact on metrics like sales or service quality. This approach aims to make training a driver of business growth rather than just an expense.

The company's clients include major global corporations such as Unilever, Shake Shack, and Coca-Cola, as well as Electra in Israel. The new funding, led by PeakSpan Capital with participation from existing investors like Vertex Ventures, will be used to expand Bites' operations, particularly in the U.S., and to further develop its AI engine. The company plans to broaden its reach into sectors like banking, insurance, and companies employing contract and external workforces.