From startup grind to acquisition: the story of Ultimate.ai

In this candid conversation, Pirkka Palomäki, one of Maki.vc's founding partners and the first VC investor in Ultimate.ai, sits down with Reetu Kainulainen, co-founder and former CEO of Ultimate.ai, to discuss Ultimate.ai's journey from its early days to its recent acquisition by Zendesk. This is a condensed version of a recent event "The Rollercoaster Exit Journey with Ultimate.ai" where they discussed the challenges of navigating a major acquisition.

The early days of Ultimate.ai

Reetu Kainulainen co-founded Ultimate.ai in 2016 to address a major problem: most chatbots simply didn't work. He believed that there is a better way of using AI to deliver a far superior customer support experience. Ultimate.ai's platform allows businesses to automate customer service workflows by integrating AI-powered virtual agents and support automation tools that handle routine inquiries. Unlike other companies at the time, Ultimate.ai aimed to fix issues most customer support bots faced--- clunky interactions that left customers frustrated. Reetu didn't sugarcoat the early years. "Seven years of bloody grinding," he called it, a testament to the sheer effort it took to build and refine Ultimate.ai's product.

Ultimate.ai founding team, photo by Ultimate.ai

Navigating the changing AI landscape

The customer support automation landscape was evolving rapidly. The arrival of OpenAI's ChatGPT seemed, at first, like it could threaten Ultimate.ai's entire business model. But as Reetu shares, it had the opposite effect: "We broke our inbound record very soon after and continued to double it." With ChatGPT bringing attention to AI, Ultimate found itself in high demand, breaking records as companies rushed to leverage AI in their own operations.

Challenges and strategic keypoints

Strategic planning for integrations with third-party CRM and customer support systems and using them as go-to-market partners wasn't exactly a top priority at first. Ultimate.ai was more focused on solving immediate customer problems.

Their first significant integration got started with Finnair, who approached Ultimate.ai directly with a request to integrate with Salesforce. One integration led to another. Zendesk followed as their third integration, and it soon became clear that Zendesk's customer profile was a perfect match. As Ultimate.ai continued to grow, partnerships like these proved essential, not just for credibility but for expanding their reach within the customer support ecosystem.

Reetu Kainulainen at Ultimate.ai office, photo by Ultimate.ai

The path to acquisition

The idea of selling wasn't on Ultimate's radar when Zendesk first approached them. At the time, Zendesk recognized the shifting landscape of customer support preferences and understood that AI would be essential for meeting future demands. This realization led to intensified discussions about a potential acquisition of Ultimate.ai. With the adoption of AI accelerating, Zendesk's decision-makers knew they needed a more integral partner to help them leverage this technology efficiently and to make it a competitive advantage.

Zendesk's acquisition process wasn't the typical "sharks circling" scenario Reetu expected. Instead, it was a series of strategic conversations and ongoing collaboration. As Zendesk continued evaluating its options, Ultimate focused on leveraging the increased adoption of AI to drive record-breaking results, ensuring the business is at a strong position at this pivotal opportunity.

Ultimate.ai team on offsite in 2022, photo by Ultimate.ai

Reflecting on the journey

Selling Ultimate was a huge decision for Reetu and the rest of the founding team. After almost a decade of pouring his time and energy into the startup, selling it felt like letting go of a piece of himself. "It's just a very weird decision when you've built something for the past decade and the company is your identity," Reetu reflects.

Today, as Vice President of Product at Zendesk, Reetu leads a team that is growing faster than ever post-acquisition. Yet he remains connected to his roots, always seeking to build, innovate, and tackle challenges head-on. This drive to push boundaries and continually evolve customer support automation defines not only his career but also the team's approach to the future.

Want to join the conversation? Connect with our team at upcoming Maki House events or reach out to Pirkka directly at pirkka@maki.vc to discuss your thoughts on the evolving AI landscape.