August 14, 2025
5 min read
Murad Hemmadi
Vendasta Enters the Growing Market of AI Agents for Small Businesses
Saskatoon-based software company Vendasta has developed AI agents tailored for small businesses, joining a crowded field of companies offering virtual assistants. The system, called Conversations AI, can be deployed across websites, messaging apps, or phone calls, and integrates with other software to complete tasks. For example, Vendasta’s AI receptionist can book appointments, generate quotes, and make sales. This technology enables local stores, salons, and franchisees to respond to customers 24/7, meeting modern expectations, said Sanjay Manchanda, Vendasta’s Chief Marketing Officer. This reduces wasted marketing efforts and helps prevent losing potential customers to competitors. To make the AI agents more personable, clients can customize them to comment on local sports results or offer weather-based suggestions.Key Features and Market Approach
Vendasta’s AI agents start with a virtual receptionist capable of booking appointments, generating quotes, and making sales. The company partners with digital agencies that help independent stores, salons, and service providers operate its software and tools. Many small businesses are interested in AI but find existing tools too complex or time-consuming to manage, explained Rylan Morris, Vendasta’s Vice-President of Product Marketing. To address this, Vendasta works with digital and marketing agencies that resell and manage its software for clients such as beauty salons, car rental firms, insurance brokers, and independent retailers. Founded in 2008, Vendasta is best known for its technology marketplace, which allows partner agencies and small businesses to access a variety of sales and marketing applications, including those from third-party developers. The company is now repositioning itself as a creator of AI tools.Funding and Growth
Vendasta has raised US$161.5 million in venture capital, including a $20-million Series E round in October 2023 aimed at funding acquisitions. The company filed for an IPO in March 2021 but paused it to raise $119.5 million in private financing instead. Investors include the Canadian Business Growth Fund, BDC Capital, and Colorado’s Foundry Group. The scale-up employs over 600 people, with 260 in Canada, and is now cash-flow positive with annual recurring revenues exceeding $100 million, according to Nykea Behiel, Director of Brand and Experience.Future Plans and Competitive Landscape
The AI receptionist is the first of several planned agents, with upcoming launches this year focused on sales and content creation. Other tech companies and scale-ups have already introduced chatbots and voice assistants for customer service, sales, and marketing communications. Vendasta’s deep experience working with small businesses gives it an edge in selling AI agents to this market, Manchanda said. Small firms often lack IT departments or developer access and seek easy-to-install software supported by Vendasta’s partner agencies. The company has also amassed significant data on independent businesses across sectors, which it uses to refine agent scripts and features. Conversations AI is designed so clients can manage customer communications for multiple physical locations simultaneously. Clients pay a subscription fee to Vendasta or its partner agencies, with additional charges based on usage.Source: Vendasta is entering the crowded field of AI agents for small business — The Logic, August 14, 2025