Decagon, a provider of conversational AI agents for customer experience, has announced the completion of a $131 million Series C funding round. This latest investment elevates the company’s total funding to $231 million within a year of its emergence from stealth mode, valuing Decagon at $1.5 billion. The round, which garnered five times more investor demand than available capacity, was co-led by Accel and Andreessen Horowitz (Growth Fund).
Existing investors A*, Bain Capital Ventures, and BOND participated in the round, alongside new investors Avra, Forerunner, and Ribbit Capital. Sarah Wang, General Partner at a16z Growth, commented on the investment, stating, “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.”
Decagon distinguishes its offering through its product-driven approach, centered on Agent Operating Procedures (AOPs). AOPs enable customer experience operators to configure and refine AI agent behavior in real time using natural language. Concurrently, technical teams maintain full control over the underlying code. This methodology allows enterprises to deploy AI agents rapidly, often in weeks rather than months, without the need for extensive professional services. The platform also provides real-time visibility into agent performance across various channels, facilitating swift issue identification, safe experimentation, and continuous improvement of the end-user experience.
Leading brands such as Hertz, Eventbrite, Duolingo, Oura, Bilt, and Notion utilize Decagon’s AI agents to manage customer interactions at scale. Vikram Rajagopalan, Vice President of Customer Experience at Hertz, noted, “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.” Ivan Zhou, Partner at Accel, added, “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.”
Decagon’s AI agents operate across multiple channels including chat, email, voice, and SMS. A centralized intelligence layer allows companies to define workflows, knowledge bases, and brand voice uniformly across all customer touchpoints. This unified approach enables the handling of complex tasks such as refunds, identity verification, and escalations with consistency, regardless of the customer’s preferred communication method.
Jesse Zhang, Co-founder and CEO of Decagon, articulated the company’s vision, stating, “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.”
The funding follows a period of significant expansion for Decagon, which reported growth from zero to eight figures in annual recurring revenue (ARR) and a quadrupling of its customer base over the past year. The company’s platform currently supports customer service for tens of millions of end-users globally. In April, Decagon was featured on the Forbes AI 50 list. The new capital is designated to accelerate product development and scale the team to meet escalating market demand.
