France-based AI photo editor Photoroom bags €39.7M to help businesses create studio-quality images

Paris-based Photoroom, an AI photo editor, announced that it has secured $43M (approximately €39.73M) in a Series B round of funding. With this round, Photoroom’s total raised funding comes to $64M (approximately €59.14M).

The latest round was led by existing investor Balderton Capital, along with new investor Aglaé, and participation from YCombinator.

Cameron Curtis, EVP of Worldwide Digital Marketing at Warner Bros, says, “Photoroom shattered all expectations. Its unparalleled ease of use became the catalyst for propelling the Barbie Selfie Generator into the digital spotlight, and captivating audiences worldwide.”

Capital utilisation

Photoroom aims to advance its generative AI innovation. 

The funds will be used to enhance model capabilities through increased GPU investment, obtaining imagery from top image providers and photographers, and doubling the team size by the end of 2024 by hiring top-tier AI talent.

Brief about Photoroom

Founded in 2019, Photoroom offers photo editing software, enabling the creation of impressive images without the need for training. 

Using deep learning, the platform translates pixels into objects, streamlining tasks like background removal and object deletion, and simplifying non-creative processes in photo editing.

Processing over 5 billion images annually and with 150 million downloads, Photoroom is available across mobile, web, and through an API in over 180 countries. The company’s global team comprises over 50 employees.

In November 2022, the company raised $19M in its Series A round of funding.

What is Photoroom Instant Diffusion?

Photoroom’s latest funding comes after the unveiling of its first foundation model, Photoroom Instant Diffusion (Photoroom ID). This specialised model is designed exclusively for product photography.

Photoroom ID is crafted to excel in product photography, ensuring a consistent and uniform style across images from various sources, giving the impression of being captured in the same setting.

Matthieu Rouif, co-founder of Photoroom, says, “The foundation model is the next step in empowering businesses to create amazing product photos without the need to be an expert at prompt engineering or photography. Our model has been trained to excel at product photography and can quickly adapt to user needs and feedback.”

“We are not only increasing the speed of our model, but also optimising for quality, through higher resolution, more detailed images, and a larger training dataset than ever before. As a user-centric AI company, we designed the architecture to make sense for our users.”

Photoroom’s custom model control enables integration of new research and boosts image generation speed by up to 40 per cent, offering users efficiency in generating and iterating images compared to other visual AI models.

Photoroom also unveiled a suite of advanced AI photo-editing tools for businesses, including AI Backgrounds, AI Expand, AI Images, AI Fill, Auto-rotate, AI Upscale, and an Image Editing API. These tools provide enhanced creative control, enabling businesses to generate, edit, and refine product images efficiently.

Photoroom’s new foundation model and features empower small businesses with enhanced creative control, facilitating the creation of professional-quality product images. 

The collaboration with global photographers and image providers ensures a diverse dataset with proper consent. 

For businesses handling a high volume of images, Photoroom focuses on automating workflows through its Image Editing API. Already used by teams like Smartly, Printify, Faire, Bulgari, and Netflix, the API integrates Photoroom’s capabilities into various workflows. 

Photoroom plans to make its latest generative AI features accessible through the API in the coming months.

Brief about the Investors supporting Photoroom

Balderton Capital is a venture firm with over 20 years of experience. It supports European founders from Seed to IPO. The firm invests across the technology sector, with past successes including Darktrace, Depop, and Revolut. Their current portfolio includes companies like Aircall, Contentful, and Vestiaire Collective.  

Aglaé Ventures is an investment firm based in Paris, New York, and Los Angeles, backed by the Arnault family’s holding company, Agache. The firm supports companies like Airbnb, Slack, and Spotify. 

Aglaé Ventures specialises in marketplaces, software, and content platforms, providing long-term capital, international deployment expertise, and access to a network of leading experts and entrepreneurs.

YCombinator, founded in 2005, supports founders in launching and scaling technology companies. With over 3,000 funded companies, 60+ valued at $1B+, and a $600B+ combined valuation for alumni, YC runs a flagship programme twice a year, providing $500K in seed funding and three months of intensive support for startups.