Confirmed: Photoroom, the AI image editor, raised $43M at a $500M valuation

Confirmed: Photoroom, the AI image editor, raised $43M at a $500M valuation



Photoroom, the AI-driven photo-editing app based in Paris, has successfully closed its latest funding round, securing $43 million at a notable valuation of $500 million. This significant financial boost was led by Balderton Capital, with participation from new investor Aglaé and previous backer Y Combinator. Having surpassed 150 million downloads and processing a remarkable 5 billion images annually, Photoroom operates in a competitive market alongside notable players like Picsart and Pixelcut.

This funding round is particularly noteworthy for Photoroom as it comes at a time when the company is experiencing considerable adoption in the face of strong competition. The app's popularity is evident in its 150 million downloads and the processing of 5 billion images annually. In a market that includes players like Picsart, which has raised nearly $200 million, and Pixelcut, Photoroom has carved a niche with its user-friendly interface and robust features.

The funding, led by Balderton Capital and joined by Aglaé and Y Combinator, will propel Photoroom's expansion plans. The company aims to hire more talent and continue investing in research and development and infrastructure. Despite the challenging landscape that has witnessed layoffs across the tech industry, Photoroom currently employs around 50 people and plans to double its workforce by the end of the year.

Notably, Photoroom distinguishes itself by training its own models from scratch, a departure from many startups in the AI applications space. This approach requires significant investments in compute power and licensing agreements for image rights from agencies and creators. The company is keen on hiring technical talent to enhance the efficiency and operation of its models further.



Matthieu Rouif, CEO and co-founder of Photoroom, highlighted the company's commitment to empowering businesses to create impressive product photos without the need for expertise in prompt engineering or photography. Photoroom's model excels in product photography, adapting quickly to user needs and feedback. The company claims that its custom architecture accelerates image generation by up to 40% compared to other visual AI platforms.

Beyond its homegrown models, Photoroom regularly introduces new features. The funding announcement coincides with the launch of a new tool, Photoroom Instant Diffusion, designed for creating consistently styled product photography for individual sellers. This tool aims to ensure that product images maintain a professional studio look, irrespective of where and how they were shot.

Photoroom's generative AI capabilities have garnered praise from investors, with Bernard Liautaud, Managing Partner at Balderton, expressing confidence in the company's ability to lead in the evolving landscape of generative AI. The funds raised in this latest round bring Photoroom's total funding to $64 million since its founding four years ago.