Kaltura Acquires AI Startup eSelf.ai for $27 Million to Integrate Virtual Avatars into Corporate Video Platform

Israeli enterprise video company Kaltura announced a $27 million acquisition of the AI startup eSelf.ai, marking a strategic move to integrate realistic, interactive avatars into its corporate and educational video systems. The deal comes amid ongoing challenges for Kaltura’s business, as it seeks to revitalize growth and investor confidence.

The market reacted immediately: Kaltura’s stock jumped over 25% on Nasdaq and briefly climbed more than 30% during the trading day, erasing much of its year-to-date decline of about 20%.

Adding AI-Driven Avatars to Kaltura’s Platform

Founded in 2023, eSelf.ai develops a platform enabling organizations to deploy visual, conversational, and multilingual virtual agents that support over 30 languages. These agents can be customized to reflect organizational terminology and serve diverse functions — from marketing, sales, and customer support to training, recruitment, and education.

The technology also has potential applications across media, finance, and healthcare, offering institutions the ability to provide personalized digital interactions through realistic, responsive avatars.

The startup was founded by Dr. Alan Becker (CEO) and Aylon Shoshan (CTO). Becker, who holds a PhD in machine learning and AI specializing in voice, language, and computer vision, previously founded Voca.ai, later acquired by Snapchat. He will join Kaltura as Chief Technology Officer following the acquisition.

Shoshan, a Technion graduate and former Unit 8200 officer, is a recipient of the Israel Defense Prize. The eSelf.ai team includes more than 15 AI experts specializing in computer vision, NLP, and voice technologies.

Funding and Exit

Before the acquisition, eSelf.ai completed a $4 million seed round, backed by M-FUND, Explorer Investments, and Ridge Ventures. Though the exit represents a modest return, it highlights a growing trend of early-stage AI startups being acquired by larger firms seeking expertise and rapid integration of generative AI technologies.

Similar acquisitions in recent months include WEAVY’s sale to Pigma and BASE44’s acquisition by Wix

Kaltura plans to incorporate eSelf.ai’s capabilities into its Genie suite — a family of AI-driven agents introduced last year that generate personalized multimedia experiences for enterprise users, educators, and media consumers.

The acquisition will enable real-time conversation, avatar interaction, and screen-sharing capabilities, significantly expanding Genie’s interactive potential.

Financial Overview and Market Context

Despite this innovation push, Kaltura’s financial situation remains challenging. The company’s market capitalization stands at approximately $300 million, down sharply from its $1.2 billion valuation at IPO in 2021.

In its Q3 2025 financial report, Kaltura posted $43.9 million in revenue, slightly below the same quarter last year. It recorded a net profit of $2 million (non-GAAP) versus breakeven a year ago, while the GAAP loss narrowed to $2.6 million, compared with $3.6 million previously.

Alongside the acquisition, Kaltura also announced it had repurchased 14 million shares previously held by Goldman Sachs, which invested in the company before its IPO. The shares were purchased at a 25% discount to the past month’s average price, totaling $16.6 million.