Auxia Inc. said it raised $23.5 million in Series A and seed funding to develop and sell its agentic artificial intelligence platform for personalized customer communications.

The startup, which was founded by a team of former Google LLC executives, is focused on the data businesses collect through first-person interactions with customers but often don’t use. Auxia’s platform orchestrates customer communications based on past interactions and behaviors, delivering personalized content across a variety of touch points.

Citing Boston Consulting Group Inc. data, the company says the use of AI for personalization is expected to be a $2 trillion market over the next five years. McKinsey & Co. has estimated that companies that excel at personalization generate 40% more revenue from outreach than average players.

End of A/B testing

Auxia’s platform automatically extracts and processes real-time signals from first-party data. The company said its model-driven experimentation platform can test multiple self-optimizing machine learning models and hundreds of concurrent hypotheses simultaneously, automating what typically takes three or more months of work by a data science team. The automated approach eliminates manual A/B testing and manual campaign optimization.

“Hyperpersonalization has been a holy grail,” said co-founder and Chief Executive Sandeep Menon. “We spent over a year developing the technology infrastructure to provide it at scale.” Auxia said its platform is already processing more than 2.6 billion events daily and handling 6,500 queries per second at peak rates.

Marketing teams can set high-level objectives and adjust agent behavior parameters to regulate the degree of autonomy permitted. The platform uses three types of agents. Decision agents look at structured and unstructured data about customers and decide what actions to promote. “They help you determine what is the right thing to show to a user across their lifecycle to drive functions such as second purchases or converting freemium users to premium,” Menon said.

A second type of agent determines what content to show customers based on interests and their stage in the buying cycle. An analyst agent essentially duplicates the work of data scientists in analyzing past campaigns to decide what steps to take next.

Auxia connects to most popular cloud data warehouses, customer relationship management and marketing automation systems. “Most companies have a data layer and an orchestration layer. They’re missing intelligence layer in the middle,” Menon said. “Our agents are focused on making decisions and connecting to your existing marketing tools.”

The funding round was led by VMG Partners II, LLC with participation from MUFG Innovation Partners Co. Ltd., Incubate Fund KK, Vela Partners LLC, Stage 2 Capital Advisors LLC and more than 50 individuals.

Image: Auxia