United States – Enterprise AI company Yellow.ai has entered into a definitive business combination agreement with special purpose acquisition company (SPAC) Bluerock Acquisition Corp. that is expected to take the company public on the Nasdaq Capital Market.
The combined company will operate under the Yellow.ai name and trade under the ticker symbol “YAI” following the completion of the transaction, which is expected in the second half of 2026, subject to customary closing conditions, including shareholder approval from Bluerock.
Under the agreement, Yellow.ai is valued at a pre-money valuation of approximately US$300 million, while the combined company is expected to have a pro forma equity value of approximately US$550 million.
Founded in 2016 by Raghu Ravinutala, Rashid Khan and Jaya Kishore Reddy, Yellow.ai develops enterprise agentic AI technology designed to automate customer service and business processes. The company said its platform enables AI agents to autonomously plan, act and resolve customer interactions across enterprise systems, channels and more than 135 languages.
The company said enterprise customers now account for more than 70% of its recurring revenue, reflecting its focus on larger enterprise contracts. It also highlighted Nexus Vox, its AI voice platform, as its fastest-growing product, offering voice-based AI agents for enterprise contact centres.
Yellow.ai currently operates in more than 85 countries and said its platform supports approximately 16 billion conversations annually.
The company said it sees growth opportunities as enterprises adopt AI-driven customer experience technologies, particularly within the business process outsourcing (BPO) industry. It plans to pursue both organic expansion and acquisitions of BPO operators, with the aim of integrating its AI platform into acquired businesses.
According to the companies, the transaction is expected to generate more than US$200 million in gross proceeds. This includes approximately US$175 million held in Bluerock’s trust account, assuming no shareholder redemptions, as well as US$30 million in committed private investment in public equity (PIPE) financing from institutional investors. Yellow.ai added that it may raise additional PIPE financing before the transaction closes.
The proceeds will be used to invest in the company’s agentic AI platform, expand enterprise sales across North America and Europe, scale global operations, and support its acquisition strategy.
The boards of directors of both Yellow.ai and Bluerock have unanimously approved the business combination agreement.
Commenting on the transaction, Raghu Ravinutala, CEO of Yellow.ai, said, “Ten years ago we bet that enterprises would stop buying software that assists people and start deploying agents that do the work. That’s no longer a thesis — it’s in production: 16 billion conversations a year, across 135+ languages, inside some of the largest companies on earth. BPOs, with a large US market, mainly driven by humans, will move to agents that plan, act and resolve — and the platform enterprises trust to run it will define the category.”
Jaya Kishore Reddy, Chief Product Officer at Yellow.ai, said, “The industry is moving to specialised models. Yellow.ai is positioned to build industry-leading IP trained on domain expertise, vertical by vertical.”
Rashid Khan, Chief Marketing Officer and Head of Investor Relations, said, “Enterprise demand for AI is accelerating. This combination positions us to meet it.”
Kaushik Bhaskar, CEO of AI Services at Yellow.ai, said, “The CX industry is at an inflection point, and Yellow.ai has the technology, data and platform to lead it — a chance to build a category-defining company.”
Nand Sharma, President and Group CFO of Yellow.ai, said, “We pair enterprise AI software with proven operating expertise, so enterprises transform faster with better efficiency, quality and outcomes.”
Ramin Kamfar, Chairman and CEO of Bluerock Acquisition Corp., said, “As some investors seek exposure to AI roll-up strategies, Yellow.ai is executing a consolidation strategy in a market we believe is ripe for operational optimisation, growth trajectory, and margin expansion. Yellow.ai has built an enterprise-grade platform already operating at production scale across some of the world’s most demanding organisations. We’re excited to back the Yellow.ai team as they aim to consolidate this attractive and fragmented market and scale their agentic AI platform.”
