Sources: PhotoRoom, the AI photo editing app, is raising $50M-$60M at a $500M-$600M valuation

The explosion of AI technology is ushering in a new era of startups in the mobile imaging market. One standout is PhotoRoom, an AI-based image editing app and API from Paris, which is reportedly set to raise between $50 million and $60 million in funding at a valuation between $500 million and $600 million. The company has already garnered considerable attention from investors due to its B2B focus, which sets it apart from consumer-focused apps. It has found success by targeting small businesses and e-commerce vendors with its fast, easy-to-use, and cost-effective photo editing software and API. Large companies like Warner Bros, Netflix, and Wolt are also utilizing its tools for various use cases. PhotoRoom has significantly expanded its feature set and maintained a revenue-generating business model, offering both freemium and paid pricing tiers. Its iOS app is currently ranked third among all graphics and design apps in the U.S., and it has reached over 100 million downloads. As generative AI gains traction, PhotoRoom stands as one of the top players in the space, holding promise for success in a still maturing market.