Yelp to Acquire AI Lead Management Startup Hatch for Up to $300 Million

January 26, 2026
Yelp Inc. has agreed to acquire AI-powered lead management company Hatch for up to $300 million, combining Yelp’s scale with Hatch’s automation technology to enhance services for local businesses.

Yelp Inc. has entered an agreement to acquire Hatch, an AI-driven lead management and communication platform, in a deal valued at up to $300 million.

The agreement includes an initial cash payment of $270 million, with an additional $30 million in employee retention incentives contingent on staff remaining with the company for two to three years. The acquisition is expected to close in early February, subject to customary conditions.

Founded in 2018, Hatch provides a platform that centralizes customer communication across text, email, and voice channels. The system uses AI to automate responses to new leads, manage follow-ups, and handle inbound and outbound interactions such as appointment scheduling and inquiry responses. The company reported $25 million in annual recurring revenue as of November, growing 70% year over year.

Yelp stated that integrating Hatch’s technology will accelerate its strategy to expand AI tools for local service businesses, combining its reach with Hatch’s automation capabilities to improve lead management and customer engagement.

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