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AI Image Editor Photoroom Completes Its First Acquisition

May 24, 2025 | By Kailee Rainse

Photoroom, a French photo editing app valued at $500 million, has made its first-ever acquisition.

SUMMARY

  • Photoroom is a French photo editing app valued at $500 million, has made its first-ever acquisition.

It has bought a startup that specializes in creating images with automatically placed text.

Photoroom’s co-founder and CEO, Matthieu Rouif, called it a “big day” for the company. He announced the strategic acquisition of GenerateBanners in a social media post from the Google I/O conference.

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Rouif explained that GenerateBanners has technology that makes it easy to place and arrange text on images at a large scale.

Photoroom said: “Photoroom’s API already powers millions of product images, but customers needed template-based text composition to convert those images into ready-to-run ads.

“GenerateBanners solved precisely that challenge. It enables consistent branded campaigns across all marketing and commerce channels.”

The value of the deal has not been disclosed.

As part of the deal, Thibaut Patel, founder of GenerateBanners, will become Head of API at Photoroom and lead its API team.

Patel said: “Photoroom was an obvious match for GenerateBanners. It has a proven track of record shipping state-of-the-art AI models, and productizing them.”

Photoroom has also launched a new product called Visual Ads Automation, which automatically turns product collections into creative ads.

Photoroom processes about five billion images a year, reached €50 million in annual recurring revenue in 2023, is profitable, and has recently expanded into the enterprise market, attracting clients like Amazon and DoorDash.

Photoroom helps businesses stand out with great-looking photos. Using AI, it makes photo editing simple and fun—while delivering professional-quality results.

About Photoroom

Photoroom, founded in 2019, aims to make photo editing easy and affordable. It offers a simple app that delivers professional-quality results without the high cost.

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