Decagon, an AI-powered customer service startup, has announced a $65 million Series B funding round led by Bain Capital Ventures. The funding will support team expansion, customer acquisition, and the addition of a voice feature to its product.
Founded by Jesse Zhang and Ashwin Sreenivas in August 2023, Decagon's software is currently utilized by companies such as Notion, Duolingo, and Substack to manage customer inquiries efficiently. CEO Zhang emphasized that their AI chatbot has consistently outperformed competitors in 'bake-off' tests against platforms like Salesforce.
With this new investment, Decagon's total funding reaches $100 million, elevating its valuation to $650 million. The company aims to leverage advancements in AI to automate customer service tasks, allowing businesses to reduce their human support teams significantly. For example, one client reduced its customer support staff by 80%.
Decagon's AI agents utilize large language models and are trained on enterprise-specific data, ensuring they provide accurate and timely responses. The company has also implemented a system to keep training data current, addressing a common challenge in the industry.
Investors believe that Decagon's approach provides transparency and control over AI interactions, which could lead to broader adoption of AI-driven customer service solutions.