Decagon, a provider of conversational AI agents for customer experience, announced a $131 million Series C funding round. The company uses AI agents to improve customer service interactions across various channels, including chat, email, voice, and SMS. The round brings Decagon's total funding to $231 million since emerging from stealth mode one year ago.
The round valued Decagon at $1.5 billion. The round was led by Accel and Andreessen Horowitz (Growth Fund). Participating investors included existing investors A*, Bain Capital Ventures, and BOND, and new investors Avra, Forerunner, and Ribbit Capital.
"We’re at a defining moment for AI agents, with massive demand specifically in the customer experience sector," commented Sarah Wang, General Partner at a16z Growth.
Decagon's platform, built around Agent Operating Procedures (AOPs), allows businesses to design and adjust AI agent behavior using natural language, while maintaining code control. This enables rapid deployment and continuous improvement of AI agent experiences. The company claims that businesses can go live in weeks, not months, and gain real-time visibility into agent performance. Decagon's clients include Hertz, Eventbrite, Duolingo, Oura, Bilt, and Notion.
The company reports significant year-over-year growth, increasing annual recurring revenue (ARR) from zero to eight figures and more than quadrupling its customer base in the past year. Decagon's platform currently serves tens of millions of end-users globally. The funding will support scaling the product and team.
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Several companies offer similar AI-powered customer service solutions. Intercom, for example, provides a comprehensive suite of customer communication tools, including chatbots. Another competitor, Ada, focuses on building AI-powered chatbots for customer support.
