AI interactive content company Flam has successfully raised $40 million in a Series B funding round led by QED Investors. According to reports from Mint, Business Wire, and Business Standard, the round also included participation from Claypond Capital, Martin Chavez, Olivier Pomel, Venky Harinarayan, and actor Shah Rukh Khan, along with existing investors RTP Global and Dovetail. The company declined to disclose its valuation in the series B funding round, though data from Tracxn shows the company was last valued at $32.3 million. The San Francisco-based company plans to use the capital to support research and development on its AI models, expand its product suite, and scale its enterprise sales operations globally.
Founder Shourya Agarwal articulated a bold vision for the future of content consumption, stating that "Content has moved in waves, from text to images to video, and every wave flowed one way, creator to viewer. We think interactive is the next default for the internet." As reported by Mint, Agarwal emphasized that "The demand was always there. The technology wasn't. We have made interactivity effortless to build and deploy at enterprise scale." This vision aligns with QED's contrarian investment approach, with co-founder and managing partner Nigel Morris framing the bet as "a gap that is bigger than most people think, and Flam is the first team we've seen with the infrastructure to go after it." Sandeep Patil, Partner at QED Investors, noted that "The traction was too exceptional to ignore. Every major shift in internet content has created new platforms and new winners. What tells us Flam will be one is not just the growth rate but also the pace of their AI research and the partners choosing to build on it."
As reported by Mint, Business Standard, and Business Wire, Flam has significantly expanded its enterprise customer base to more than 100 companies in just six quarters, including Google, State Farm, and Diageo. The startup's customer base has grown from roughly 30-40 customers a year ago, with companies using Flam for marketing, product visualization, learning and development, entertainment, fan engagement, customer support and sales. According to founder Shourya Agarwal, geographic expansion, particularly in the US and Japan, has driven much of this growth, with the business currently split roughly 50:50 between India and international markets. The company's products include interactive videos, 3D content, AI-generated visual experiences, and visual agents—human-like AI characters that can hold conversations and return responses in under two seconds.
According to Tracxn data cited by Mint, Flam reported revenue of ₹8.5 lakh in FY22 and ₹14.4 lakh in FY23, while its net loss stood at ₹57 lakh in FY22 and turned into a net profit of ₹5.7 lakh in FY23. The company did not disclose current revenue or loss numbers. The latest funding brings Flam's total equity funding to $62.5 million, following a previous raise of $22.5 million including a $14 million round in April 2025. As reported by Mint, Flam is targeting $100 million in annual recurring revenue (ARR) over the next 18-24 months.
As reported by Mint, Business Standard, and Business Wire, Flam is an AI-native interactive content platform founded in 2021 by three BITS Pilani alumni—Agarwal, Malhar Patil, and Amit Gaiki. The company offers three formats of interactive content and holds more than 15 patents. Its products include interactive videos, 3D content, AI-generated visual experiences, and visual agents—human-like AI characters that can hold conversations and return responses in under two seconds. Among these formats, Flicks are interactive videos that switch person, product or scene mid-playback, Forge is Flam's editing model that takes image references and changes only the specified element, Airboards are high-fidelity 3D content on a camera interface with touch, voice interactions and haptic feedback, and Visual Agents are human-like characters that hold conversations and take agentic actions. According to Nigel Morris, co-founder and managing partner at QED Investors, "Almost every frontier AI content company we see is optimizing what already exists. Flam pointed at something else: how much of the content ecosystem is still untouched." The company is based in San Francisco with additional teams in India and Japan, developing proprietary AI models and technologies for enterprise marketing, customer support, and sales applications.
