Decagon Raises $131M Series C, Hits $1.5B Valuation

Decagon AI Inc., a San Francisco-based startup specializing in AI-powered customer service agents, has raised $131 million in a Series C funding round led by Andreessen Horowitz and Accel, bringing its valuation to $1.5 billion and total funding to $231 million. The company’s platform features Agent Operating Procedures (AOPs), which enable non-technical customer experience teams to manage AI agent behavior in real time while developers maintain code control, allowing rapid deployment and continuous improvement. Decagon’s AI agents operate across multiple channels, including chat, email, voice, and SMS, and handle complex tasks such as refunds and identity verification with precision and consistency. Its technology combines large language models with proprietary AI algorithms to provide personalized, scalable customer support that improves over time based on customer feedback. Decagon serves major clients like Hertz, Duolingo, Eventbrite, and Chime, with Chime reporting a 60% reduction in contact center costs and a doubled net promoter score after adopting Decagon’s solutions. The startup’s success highlights growing investor confidence in AI applications that drive cost efficiency and enhanced customer experiences amid increasing competition from companies like Salesforce and Sierra.