Phonic, the first fully unified speech-to-speech platform for conversational voice AI, has raised $4 million in funding from Lux Capital and AI visionaries behind Hugging Face, Replit, Applied Intuition, and Modal. This funding will accelerate the deployment of Phonic’s hyperrealistic, low-latency voice agents designed for dynamic, real-world customer interactions.
Redefining Voice AI with Reliability and Realism
Voice AI has long promised to transform customer engagement—but has often fallen short due to brittle, disjointed systems and rigid conversational flows. Phonic addresses these limitations by building a unified voice AI platform that processes speech in, speech out with just 300 milliseconds of end-to-end latency.
“Reliability has been a primary blocker of voice AI adoption,”
— Moin Nadeem, Co-founder and CEO of Phonic
Phonic eliminates the need for separate tools for voice generation, speech recognition, and interaction design. Its intelligent decision engine replaces outdated decision trees with a dynamic system that adapts in real time, learning from past conversations and organizational knowledge.
Features of the Phonic Platform
- Unified Speech-to-Speech Stack: Voice in, voice out with seamless integration—no piecing together APIs.
- 300ms Latency: Enables natural, real-time conversations without awkward delays.
- Intelligent Decision System: Handles both standard and edge-case conversations by learning from previous customer interactions.
- Hyperrealistic Voices: Offers unmatched audio quality that resonates with users.
- Deployment Flexibility: Available via cloud API or on-premises, supporting enterprise-grade security.
- Custom Workflows & Built-in Observability: Tailors the platform to unique organizational needs.
Real-World Impact in Healthcare and Insurance
Phonic is already gaining traction in regulated industries like healthcare and insurance, where reliable voice automation is critical for use cases such as:
- Appointment scheduling
- Claims processing
- Customer inquiry resolution
“We were able to delete significant complexity in our codebase, experience higher voice quality, and achieve better reliability.”
— Sayem Hoque, Founder of Flexbone
Why Industry Leaders Are Backing Phonic
Phonic’s unique architecture has attracted backing from elite investors and AI pioneers:
- Lux Capital (Lead investor)
- Amjad Masad (Replit)
- Clem Delangue (Hugging Face)
- Qasar Younis (Applied Intuition)
- Erik Bernhardsson (Modal)
“Instead of incremental improvements, Phonic has built an entirely new foundation for voice AI.”
— Grace Isford, Partner at Lux Capital
With this funding, Phonic aims to expand platform capabilities, scale customer deployments, and further refine its speech-to-speech technology across industries where human-like communication drives business value.
Voice AI That Just Works
Phonic represents a paradigm shift in voice AI by prioritizing realism, reliability, and dynamic adaptability. Businesses can now deploy conversational agents that sound human, respond intelligently, and manage complex dialogue flows without the need for fragile decision trees. As the demand for seamless voice interaction grows, Phonic is poised to become the go-to infrastructure for next-gen conversational AI.
