WhatsApp chatbot for business: types, cost in India and how to set one up

What a WhatsApp chatbot can really do, menu bots vs AI chatbots, what it costs in India, free options, and how to set one up that customers like.

By the 99ai team9 min read

A WhatsApp chatbot answers your customers the moment they message you, at 11 PM, on Sundays and during your busiest hour. Here is what a chatbot can really do for a business, the difference between menu bots and AI chatbots, what it costs in India, and how to set one up without annoying anyone.

What is a WhatsApp chatbot?

A WhatsApp chatbot is software connected to your business number that reads incoming messages and replies automatically. A good one does more than say hello. It answers the customer’s actual question, asks the questions your sales team would ask, books the appointment and hands the conversation to a person when it should.

Behind the scenes, the chatbot is connected to your number through the WhatsApp Business API, which Meta also calls the WhatsApp Business Platform. That is what lets software, rather than a person holding a phone, send the replies.

Can the free WhatsApp Business app run a chatbot?

Not really. The free app gives you three automatic tools, and none of them is a chatbot:

  • Greeting message: the same text to every new customer.
  • Away message: the same text to anyone who writes outside your hours.
  • Quick replies: up to 50 saved answers that you still send yourself.

The exception is Meta’s own AI agent, which Meta is adding to the app for eligible businesses. It is free up to a monthly allowance and can answer from your catalogue and website, but it doesn’t connect to your own CRM or calendar. We cover it in detail in our guide to Meta’s WhatsApp Business AI agent. For the differences between the app and the API, see WhatsApp Business app vs API.

Menu bots, AI chatbots and hybrids

Menu bots (rule-based)

A menu bot follows a script you design. It shows buttons or a numbered list, and each choice leads to the next step. WhatsApp supports up to three tap-to-reply buttons in a message, or a list of up to ten options. Menu bots are predictable and cheap to run, but they break the moment a customer types something the script didn’t expect.

AI chatbots

An AI chatbot reads whatever the customer writes, in their own words and language, works out what they want, and answers from the information you give it: prices, policies, availability. It can handle two questions in one message, spelling mistakes and Hinglish, which is how most people in India actually type.

The same message sent to two bots. The menu bot asks the customer to start again; the AI chatbot answers both questions.

Hybrid: the best of both

Most good business chatbots are hybrids. AI understands the message, buttons make the next step one tap (a budget, a time slot, a payment), and fixed rules decide when a person must take over. You get natural conversations with predictable outcomes.

What a chatbot can do for your business

  • Answer common questions about prices, timings, location and policies, instantly and the same way every time.
  • Qualify leads by asking about need, budget and timeline before a salesperson spends time on them.
  • Book appointments and site visits from real open slots, then send reminders the day before.
  • Collect payments by sending a payment link or UPI request at the right moment.
  • Share updates such as order status, documents pending or a renewal coming up.
  • Update your CRM so every conversation becomes a lead record your team can follow up.
  • Hand over to a person for complaints, custom requests or anything the bot isn’t sure about.

What a WhatsApp chatbot costs in India

There are usually three parts to the bill:

  • Meta’s message charges. Every reply your chatbot sends is a message. Each WhatsApp number gets 1,000 free service replies a month, then pays ₹0.115 per reply before GST. Reminders and offers sent as templates are charged too.
  • The chatbot platform. Most small-business plans cost around ₹1,500 to ₹3,800 a month, sometimes with a mark-up on each message.
  • AI usage. AI chatbots also pay for the AI model that writes the replies, usually a few paise to a few rupees per conversation, depending on the model and how long the chats are.
OptionMonthly costGood for
WhatsApp Business app auto-repliesFreeA few chats a day, one person replying
Meta’s AI agent in the appFree allowance, then a Meta One planSmall shops answering catalogue questions
Menu bot on a chatbot platformPlatform fee + Meta’s chargesSimple, predictable flows
Custom AI chatbot on the APISetup + monthly fee + Meta’s chargesLead qualification, bookings, CRM and payments

Meta’s India rates from 1 October 2026, before 18% GST. Platform prices vary by provider and plan.

A quick example: a clinic whose chatbot sends 6,000 replies a month pays nothing for the first 1,000 and about ₹575 for the other 5,000. Add 1,000 appointment reminders as utility templates (₹115) and 18% GST, and Meta’s share comes to roughly ₹815 a month. Our WhatsApp API pricing guide has a calculator for your own numbers.

Is there a free WhatsApp chatbot?

You will see “free WhatsApp chatbot” tools and open-source projects on GitHub. They can save you the platform fee, but not the rest. You still need a number on the WhatsApp Business API, Meta still charges for messages beyond the free allowance, and someone has to host, update and fix the bot. For a developer, that can be a fun project. For a business, the real cost is usually the time it takes when something breaks on a busy day.

How to set up a WhatsApp chatbot

  1. 1Write down the 10 questions customers ask most, and what your best salesperson asks them in return.
  2. 2Get your number on the WhatsApp Business API through a Meta partner or developer, and verify your business.
  3. 3Design the main paths: answering questions, qualifying a lead, booking, payment and handing over to a person.
  4. 4Give the bot your real information: prices, timings, policies and available slots. Connect your CRM and calendar.
  5. 5Create message templates for anything sent outside the 24-hour window, such as reminders, and submit them for approval.
  6. 6Test it with your team using real messages, including messy and off-topic ones, before customers see it.
  7. 7Go live, then read the conversations every week and fix any answer that confused a customer.

Rules for a chatbot customers like

  • Say it is an assistant in the first message, and what it can help with.
  • Answer the question first, then ask yours. Nobody likes a bot that only collects details.
  • Keep messages short and use buttons for the next step whenever you can.
  • Always offer a way to reach a person, and make the hand-over smooth, with the chat history attached.
  • Only message people who opted in, and respect WhatsApp’s 24-hour reply window.

Mistakes to avoid

  • Long menus that make customers read five options before they can ask their question.
  • No way out. A customer stuck in a loop with a bot is a lost customer.
  • Out-of-date prices or timings in the bot’s information.
  • Sending marketing messages to everyone who ever wrote to you. It costs money and gets numbers blocked.
  • Setting it up and never reading the conversations again.

Frequently asked questions

Can I make a WhatsApp chatbot for free?

Not a full one. The free WhatsApp Business app only has fixed auto-replies, plus Meta’s own AI agent with a limited free allowance. A real chatbot runs on the WhatsApp Business API, where Meta charges per message (the first 1,000 service replies a month on each number are free) and most platforms charge a monthly fee.

Does a WhatsApp chatbot need the WhatsApp Business API?

Yes. Software can only send and receive messages on your number through the API. The one exception is Meta Business Agent, which Meta runs inside the WhatsApp Business app.

Can a WhatsApp chatbot reply in Hindi or Hinglish?

An AI chatbot can, because it understands free text in the language the customer writes in. A menu bot only matches the options and keywords you set up, so it usually works in one language at a time.

Will customers know they are talking to a bot?

They should. Say so in the first message, keep it friendly, and always offer a way to reach a person. Customers mind slow or useless replies far more than they mind a bot.

Can a chatbot send messages to customers first?

Only with approved message templates, and only to people who have opted in to hear from you. Free-form chatbot replies are limited to the 24 hours after the customer last messaged you.

Sources

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