Bites Raises $40 Million to Expand AI-Native Frontline Training

By Grace Kim

What does the $40 million fund?

Bites raised $40 million in a Series A round led by PeakSpan Capital, bringing total funding to $55 million. Existing investors Vertex Ventures, Horizon Capital, Rittenhouse Ventures, Lyra Ventures and others also participated.

Bites said the capital will accelerate U.S. expansion and continued development of its AI-native frontline performance platform. The company is building that platform to connect employee training with measurable business outcomes across sales, service and operations.

As part of the investment, PeakSpan Capital’s Phil Dur and Charlie Reinkemeyer will join Bites’ board of directors.

Bites said the funding will also support:

• Expansion into banking and insurance
• New partner and reseller channels
• Additional U.S. commercial growth

The round supplies both development capital and new channels for Bites’ U.S. expansion.

How does Bites reach frontline workers?

Bites focuses on deskless and frontline employees. The company estimates this workforce at approximately 2.8 billion people globally, or roughly 80% of the total workforce.

Its platform delivers short training modules through channels employees already use:

• WhatsApp
• SMS
• Microsoft Teams
• Slack
• Web links

Workers do not need to install a dedicated application or create a separate login. Each module, or “Bite,” can run for up to 90 seconds and may include video, questions, summaries and discussion elements.

“Running restaurants taught me that business performance comes down to what people do on the floor, every day, and whether they have the knowledge and support to do it well. We built Bites to put that support in every frontline employee’s hands.”

—Eran Heffetz, Bites’ co-founder and CEO

Heffetz’s account ties business performance to daily decisions by frontline workers, with training designed to supply practical support at the point of work.

Bites is trying to reach deskless employees inside existing communication channels instead of asking them to adopt another application.

Which AI tools power the training?

• Ask-AI lets employees ask questions in natural language using approved company content.
• AI Studio can turn materials such as PDFs, standard operating procedures or basic instructions into branded training videos.
• Bites says the platform supports more than 150 languages, and teams can modify videos through an AI editing agent.

Together, the tools extend Bites beyond lesson distribution into question-answering, content creation and video editing.

What results has Bites reported?

Bites said customers typically achieve engagement rates above 90% within three weeks. The company also reported 161% net revenue retention.

Its customers include:

• Unilever
• Coca-Cola
• Shake Shack
• Wynn Resorts
• The Venetian
• Compass Group

For prospective buyers, Bites’ 90% engagement and 161% retention figures are the main commercial proof points.

How does training connect to business results?

Bites is building deeper integrations between learning activity and data from point-of-sale, CRM, ERP and human capital management systems.

Under Bites’ plan, the workflow will:

1. Detect performance gaps
2. Automatically generate targeted training
3. Deliver the training to relevant employees
4. Measure whether the underlying business metric improves

That planned loop could let Bites tie training delivery to a measurable operating metric.

Why are investors backing Bites?

“Frontline employees make up approximately 80% of the global workforce, yet companies have historically had to stitch together tools designed for office workers because few solutions have been built with deskless workers specifically in mind.”

—Phil Dur, PeakSpan Capital’s co-founder and managing partner

Dur’s investment case centers on the shortage of software built specifically for deskless workers.

“Few companies get customers to come back and ask for more. Bites does. As Bites’ first lead investor, we’ve believed in the team’s vision from the beginning, and we’re excited to support this next chapter as the company expands in the U.S.”

—Aviad Ariel, Vertex Ventures’ general partner

Ariel points to repeat customer demand and Bites’ U.S. expansion.

“The best founders know how to master uncertainty and turn it into opportunity, and the Bites team has demonstrated that ability time and again. What excites me about Bites is how it brings AI into everyday frontline work: on the shop floor, in a restaurant, and at the front desk.”

—Yaniv Jacobi, Horizon Capital’s co-founder and managing partner

Jacobi cites the company’s use of AI on shop floors, in restaurants and at front desks.

With $55 million in total funding, Bites’ U.S. expansion will test whether customer engagement above 90% and 161% net revenue retention translate into measurable frontline performance gains.