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

Photoroom, the AI-powered photo editing app based in Paris, has successfully closed a funding round of $43 million, valuing the company at $500 million. Co-founded by Matthieu Rouif and Eliot Andres, Photoroom has garnered substantial popularity among online business users and casual consumers alike. Despite initial reports suggesting a larger funding amount, the company’s latest financing underscores its steady growth trajectory in a competitive market, with competitors like Picsart and Pixelcut.

The funding round was led by Balderton Capital, with participation from new investor Aglaé and existing backer YCombinator. While the complete list of investors remains undisclosed, previous backers include Kima Ventures, FJ Labs, Meta, and notable individuals from leading tech companies like Twitter and Disney+. Photoroom has cumulatively raised $64 million since its establishment four years ago.

Photoroom intends to leverage the fresh capital to bolster its workforce, expand research and development initiatives, and enhance its technological infrastructure. Currently employing around 50 individuals, the company aims to double its staff by the end of the year. Noteworthy is Photoroom’s distinctive approach of training its AI models internally, requiring substantial investments in computing power and image rights procurement.

CEO Rouif emphasized the company’s commitment to simplifying product photography for businesses, highlighting their model’s adaptability and efficiency. In addition to its proprietary models, Photoroom plans to introduce new features like Photoroom Instant Diffusion, enabling consistent and professionally styled product images. Other existing features include AI-generated backgrounds, scene expansions, and bulk image editing tools, catering to diverse user needs.

The company’s emphasis on continuous innovation and user-centric vision has resonated with investors, as expressed by Bernard Liautaud of Balderton Capital. Acknowledging Photoroom’s unparalleled generative AI capabilities, investors remain optimistic about the company’s future trajectory in the dynamic technology landscape.