Photoroom, the AI-based photo editing app headquartered in Paris, has recently closed its latest funding round. Led by Balderton Capital, the round secured $43 million at a valuation of $500 million. Co-founder and CEO Matthieu Rouif, along with CTO Eliot Andres, confirmed this development.
Earlier reports indicated that the funding round would exceed $50 million, but it ultimately settled slightly lower. Despite a competitive market, Photoroom has witnessed significant adoption. The app processes approximately 5 billion images annually and boasts over 150 million downloads. Additionally, it offers an API and a web interface for users.
In addition to Balderton Capital, new investor Aglaé and previous investor YCombinator participated in the funding round. While other investors remain undisclosed, Kima Ventures, FJ Labs, Meta, and several notable angels (including Yann LeCun and Zehan Wang) have previously backed Photoroom. With this latest funding, the company’s total raised capital stands at $64 million.
Photoroom intends to utilize the funds for expanding its team and further investing in research and development as well as infrastructure. Despite industry-wide layoffs, Photoroom currently employs around 50 people and aims to double its workforce by year-end.
Photoroom, unlike many startups in the AI application space, has taken a unique approach by developing its own custom models from scratch. This strategic decision involves investing in computational power and securing image rights from agencies and creators. The company is actively recruiting technical talent to enhance the efficiency and functionality of these models. Notably, Photoroom’s proprietary architecture accelerates image generation by up to 40% compared to other visual AI platforms.
CEO Matthieu Rouif emphasizes that their foundation model empowers businesses to create stunning product photos without requiring expertise in prompt engineering or photography. This adaptable model excels in product photography and swiftly adapts to user feedback.
In addition to their homegrown models, Photoroom introduces several new features, including Photoroom Instant Diffusion. This tool ensures consistent styling for product images, regardless of where or how they were captured, giving them a professional studio look. Other features include AI-generated backgrounds, scene expansions, and a variety of image editing tools. For bulk image processing, Photoroom’s tools can handle automatic adjustments.
While we await conversations with CEO Rouif and potential investors, it’s worth noting that Balderton Capital recognizes Photoroom’s impressive journey and their commitment to a user-centric vision. Bernard Liautaud, Managing Partner at Balderton, commends Photoroom’s achievements and execution.