Decagon, a leader in conversational AI agents for customer experience, announced $131 million in series C funding, pushing its total funding to $231 million just one year after emerging from stealth. The funding round valued the company at $1.5 billion and drew five times more investor demand than capacity, underscoring Decagon’s momentum and market leadership. This funding round was co-led by Accel and Andreessen Horowitz (Growth Fund), with participation from existing investors A*, Bain Capital Ventures, and BOND, and new investors Avra, Forerunner, and Ribbit Capital.
Differentiation from the competition: Decagon stands out with its product-driven approach, specifically Agent Operating Procedures (AOPs). AOPs empower customer experience operators to design and adjust AI agent behavior in real time using natural language, while technical teams retain complete control over the underlying code. This enables brands to rapidly deploy and continuously improve the AI agent experience with Decagon, while maintaining the structure and rigor of the code underneath. Businesses can go live in weeks (not months) without relying on costly professional services.
They also gain real-time visibility into agent performance across every channel, allowing teams to quickly identify issues, experiment safely, and continuously improve the end-user experience. Decagon’s AI agents empower leading brands, such as Hertz, Eventbrite, Duolingo, Oura, Bilt, and Notion, to deliver intelligent, high-quality customer experiences at scale.
Decagon works in channels to meet customers where they are, whether that’s chat, email, voice, or SMS. And with a centralized intelligence layer at its core, Decagon enables companies to define workflows, knowledge, and brand voice once and apply them across every channel. This unified approach allows Decagon to handle complex tasks, such as refunds, identity verification, and escalations, with precision and consistency, regardless of the customer’s preferred channel.
Momentum: This latest funding round comes after a period of rapid growth for Decagon. In the past year, the company has grown from zero to eight figures in annual recurring revenue (ARR) and more than quadrupled its customer base. And Decagon’s platform powers faster and smarter customer service for tens of millions of end-users across global brands.
How the funding will be used: This funding will advance Decagon’s push to scale its product and team in response to surging market demand. And with customers already seeing an outsized impact, the company is focused on accelerating innovation and seizing this market-defining moment.
KEY QUOTES:
“We’re at a defining moment for AI agents, with massive demand specifically in the customer experience sector. Decagon has the technical prowess, focus, and expertise to lead this market, and this latest round is a testament to that.”
Sarah Wang, General Partner at a16z Growth
“At Hertz, we’re focused on leveraging technology that delivers a more seamless experience for our customers. Our partnership with Decagon has taken us from idea to impact without sacrificing control, visibility, or enterprise standards. Its AI agents are flexible, reliable, and built for scale, which is enabling more personalized interactions and helping transform how we serve our customers.”
Vikram Rajagopalan, Vice President of Customer Experience at Hertz
“Decagon’s relentless focus on customer outcomes and differentiated approach to human-agent collaboration make them a breakout leader in AI agents for customer experience. They’ve become the trusted AI partner for leading enterprises like Hertz, and are accelerating the way every company engages their customers with AI.”
Ivan Zhou, Partner at Accel
“We’ve always believed that success comes from matching execution with the right market. Brands see the massive opportunity AI agents bring to customer experience, and they want a partner who can help them capture that opportunity. This funding reflects the very real, growing demand for what Decagon delivers.”
Jesse Zhang, Co-founder and CEO of Decagon
