August 14, 2025
5 min read
Murad Hemmadi
Vendasta Launches AI Agents to Revolutionize Customer Service for Small Businesses
Saskatoon-based software firm Vendasta has developed AI agents tailored for small businesses, entering a rapidly growing market of virtual assistant providers. 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 even make sales. This tool enables local stores, salons, and franchisees to respond to customers 24/7, meeting modern consumer expectations, said Sanjay Manchanda, Vendasta’s chief marketing officer. This continuous availability helps reduce wasted marketing efforts and prevents losing interested customers to competitors. To create a more personable experience, clients can customize the agents 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 closing sales.
- The company partners with digital agencies that support independent stores, salons, and service providers by running Vendasta’s applications and tools. Many small businesses want to adopt 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 collaborates with marketing and digital agencies that resell and operate its software for clients such as beauty salons, car rental firms, insurance brokers, and independent retailers. Founded in January 2008, Vendasta is best known for its technology marketplace, which offers partner agencies and small businesses access to 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. 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 initial public offering in March 2021 but paused the process, opting instead to raise $119.5 million in private financing. Its investors include the Canadian Business Growth Fund, BDC Capital, and Colorado’s Foundry Group.
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Growth and Future Plans
With over 600 employees, including 260 in Canada, Vendasta is now cash-flow positive and reports annual recurring revenues exceeding $100 million, according to Nykea Behiel, director of brand and experience. The AI receptionist is just the first of several planned agents. Upcoming launches this year will include AI tools to assist with 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, so they seek software that is easy to install and supported by trusted agencies. The company has also amassed significant data on independent businesses across sectors, which it uses to refine the AI agents’ scripts and features. Conversations AI is designed to allow clients to manage customer communications across multiple physical locations simultaneously. Clients pay Vendasta or its partner agencies a subscription fee, with additional charges based on usage.Source: Originally published at The Logic on August 14, 2025.