Writesea, a New York-based company specializing in white-label services for recruitment marketplaces, has acquired CoverAI, a three-month-old Nigerian AI startup.
Reports state that Chris Adolphus, the founder of CoverAI, received 12 bids for his startup on the Acquire.com startup marketplace but chose Writesea as the acquiring firm.
“After 3 months, 12.5k users and some paying customers I am happy to announce that coverai got acquired by a team I believe in to lead coverai’s next phase of explosive growth.
What’s next for me? Many things, and of course all still within the AI space?” Adolphus wrote on his LinkedIn page.
Although Adolphus confirmed the acquisition was a five-figure cash deal, the specific transaction value remains undisclosed. Industry insiders estimate the deal to be less than $50,000.
CoverAI’s innovative technology, built upon OpenAI’s large language model, can swiftly create or enhance CVs within minutes. The platform operates on a freemium model, allowing users to optimize their CVs and obtain a cover letter for free.
Additional features, such as interview preparation and job application tracking, are accessible through three subscription tiers: a $5 basic plan, a $7 premium plan, and a $15 lifetime plan.
CoverAI claims to have amassed 13,000 organic customers within its short existence, and selling the startup was the founder’s plan from day one. CoverAI believes that Writesea’s competence and experience will propel the startup to new heights. Despite being bootstrapped during its three-month journey, its innovative approach gained significant traction.
To manage costs efficiently, CoverAI employed an intermediary layer to summarize prompts, controlling expenses associated with OpenAI credits. The intricacies of managing token costs, especially during extended conversations, were challenges the startup navigated effectively.
While this marks the founder’s first startup sale, he continues to manage his crypto project and a subscription-based design studio. Looking ahead, Adolphus is already in the process of developing a new AI product, aiming for a more capital-intensive venture.
With plans for paid marketing, integration of third-party apps, and utilization of OpenAI’s imaging, Adolphus aims to achieve an ambitious exit target of $200,000 within the next six months.
As Writesea integrates CoverAI’s innovative solutions, the acquisition signifies a strategic synergy, leveraging technology and expertise to enhance the recruitment marketplace landscape.
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