Phonic Launches End-to-End Speech-to-Speech Platform for Building Reliable Voice Agents, Announces $4M Funding Raise

Intelligent decision system and hyperrealistic voices deliver unprecedented reliability for voice AI

SAN FRANCISCO, April 3, 2025 /PRNewswire/ -- Phonic, the first end-to-end speech-to-speech platform for building lifelike, reliable conversational voice agents, announced a $4M funding raise from leading investors including Lux Capital and visionary leaders in the AI space including the founders of Replit (Amjad Masad), Hugging Face (Clem Delangue), Applied Intuition (Qasar Younis), and Modal (Erik Bernhardsson).

Voice AI promises to fundamentally transform customer interactions, but reliability issues have held it back. Disconnected systems, and rigid decision trees built for routine conversations, not dynamic edge cases, frustrate customers and force businesses to focus on technical challenges rather than customer needs.

Phonic addresses these challenges through breakthrough innovations: a unified end-to-end platform with direct speech-to-speech processing and an intelligent decision system designed for hyperrealistic and dynamic conversations and support.

"Reliability has been a primary blocker of voice AI adoption," said Moin Nadeem, Phonic Co-founder and CEO. "By unifying voice generation, recognition, and interaction in one seamless system, we've eliminated the complexity of managing multiple tools. Our platform delivers speech in, speech out, with 300ms end-to-end latency, enabling organizations to create hyperrealistic voice experiences that customers actually want to engage with."

The platform's intelligent decision system represents a fundamental shift from traditional decision trees, which only handle routine conversations. Phonic's approach dynamically adapts to unique customer conversations and edge cases, learning from the organization's previous calls and knowledge base to provide reliable responses across a wider range of interactions.

"Before working with Phonic, we struggled with maintaining our state machine across thousands of calls and navigating complex conversations," said Sayem Hoque, Founder of Flexbone, an AI data platform for healthcare administration. "After implementing Phonic, we were able to delete significant complexity in our codebase, experience higher voice quality, and achieve better reliability. The reliability and realism are substantially better than what we had before."

Phonic's platform can be deployed either via cloud API or on-premises for organizations with strict security requirements. With built-in observability, evaluations and support for custom workflows, it adapts to unique business needs. Already in use by customers in healthcare and insurance, Phonic enables sophisticated voice applications for appointment scheduling, claims processing, and customer inquiry handling.

"The entire industry is struggling with reliably guiding conversations toward task-driven goals," said Nikhil Murthy, Phonic Co-founder and CTO. "Traditional approaches force organizations to manage rigid decision trees that fail on edge cases. Our intelligent decision system dynamically adapts to each conversation, eliminating the need to manually code for thousands of potential scenarios. Combined with our hyperrealistic voices, we're delivering voice AI that sounds natural and responds reliably."

"Voice represents a critical but overlooked frontier in AI development," said Grace Isford, Partner at Lux Capital. "What excites us about Phonic is their holistic approach to solving voice infrastructure challenges. Instead of incremental improvements to existing methods, they've built an entirely new foundation that unifies all aspects of voice AI. This combination of technical innovation and practical implementation perfectly embodies what we look for at Lux."

About Phonic:

Phonic is the first end-to-end speech-to-speech platform for building lifelike conversational voice agents. By unifying voice generation, recognition, and interaction in one seamless system, we eliminate the complexity of juggling multiple disconnected tools. Our complete solution, with intelligence built into its core, enables organizations to create, evaluate, and observe sophisticated voice interactions that reliably handle task-oriented workflows—allowing businesses to focus on what truly matters: their customers. Founded by Moin Nadeem (MEng, MIT; BS MIT) and Nikhil Murthy (MEng, MIT; BS MIT), Phonic is on a mission to make voice AI finally work for real business needs. Phonic is funded in part by leading investors including Lux Capital, and visionary leaders in the AI space including the founders of Replit (Amjad Masad), Hugging Face (Clem Delangue), Applied Intuition (Qasar Younis), and Modal (Erik Bernhardsson). Phonic is headquartered in San Francisco. For more information or to voice your ideas, visit https://phonic.co/

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SOURCE Phonic, Inc.