Bites has raised $40 million in a Series A funding round to expand its AI-native platform for frontline workers, aiming to turn short video training into a measurable driver of business performance. The company said the new capital will fund its expansion in the United States and further development of the platform, which delivers brief video lessons to employees who often have no company email address, desk or dedicated training time.
The funding round
The round was led by PeakSpan Capital, with Vertex Ventures, Horizon Capital, Rittenhouse Ventures and Lyra Ventures participating, according to the company announcement. Total funding for Bites now stands at $55 million, a scale closer to Serval’s $150 million Series C than to a seed round, as it competes for larger enterprise customers in the United States.
Phil Dur and Charlie Reinkemeyer of PeakSpan will join the company’s board as part of the round. Their involvement signals investor confidence not only in the product, but in the size of the market for training workers outside traditional office roles.
That market is substantial. Deskless employees are estimated at 2.8 billion people, roughly 80 percent of the global workforce, yet they are often the last to receive structured training, new procedures or consistent coaching from their employers, despite their central role in daily operations.
Training without an app or a login
Bites delivers short video lessons of up to 90 seconds through WhatsApp, SMS, Microsoft Teams, Slack or a simple link, with no app install or login required. The design removes common barriers to training, since frontline staff can watch a lesson on a personal phone during a shift break.
The platform also includes Ask-AI, which answers employee questions using approved company content only, rather than drawing on general web knowledge. That constraint is deliberate: in regulated or brand-sensitive workplaces, answers need to match official procedures, not plausible-sounding guesses. That approach matters most where a wrong answer could create a safety risk or damage customer trust.
Its AI Studio tool turns a PDF or standard operating procedure into a branded training video in minutes, in more than 150 languages. An AI editing agent can then revise a video from a written description, allowing managers to update training quickly when a process, menu item or safety rule changes.
Chief executive Eran Heffetz, who co-founded the company in 2020 with Tal Nagler Almog and Hagai Horovitz, traced the idea to his own experience in hospitality, saying: “Running restaurants taught me that business performance comes down to what people do on the floor, every day.”
What customers report
Bites says its customers typically reach more than 90 percent engagement within three weeks of adoption, and the company reports net revenue retention of 161 percent. Both figures are company-reported and should be read as such, rather than as independently verified results.
Even with that caveat, the customer list is notable and includes Unilever, Coca-Cola, Shake Shack, Wynn Resorts, The Venetian and Compass Group. Those names span food, hospitality and large-scale services, sectors where frontline consistency directly affects customer experience. The breadth of that list suggests the platform is not limited to a single industry or use case.
The funding also fits a wider pattern of investment in AI tools aimed at specific workforces rather than general-purpose chatbots. Solink’s $100 million round for AI vision shows investors backing AI products with a clear operational use, while Wabi’s $55 million round for a personal AI messenger highlights a different bet on everyday communication.
Why It Matters
Frontline training is often treated as a compliance exercise, but Bites argues it should be treated as a performance tool. When staff understand a new process quickly and consistently, the result can show up in fewer errors, better service and lower turnover.
The challenge is proving that link at scale. Short videos are easy to watch and easy to ignore, and high engagement in the first weeks does not guarantee lasting behaviour change. The company’s long-term test will be whether customers renew, expand and can tie training to outcomes they already measure.
Background
Bites was founded in 2020 and is headquartered in New York and Tel Aviv. Its Series A follows earlier funding that brought its total to $15 million before this round, and the new capital is intended to support growth in the United States.
Source: company announcement
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