# Decagon (company)
**Decagon** is an enterprise AI company, founded in August 2023 by Jesse Zhang and Ashwin Sreenivas, that builds conversational AI agents for customer support and, more recently, broader "AI concierge" experiences[1](https://sacra.com/c/decagon/) • [2](https://www.businesswire.com/news/home/20260128580542/en/Decagons-Valuation-Triples-to-%244.5-Billion-as-it-Ushers-in-the-Age-of-AI-Concierge). Its agents answer customer questions and take actions such as tracking orders, issuing returns, and booking travel on behalf of companies including Duolingo, Rippling, Substack, Oura, and Avis Budget Group[3](https://decagon.ai/blog/series-c-announcement) • [4](https://claude.com/customers/decagon) • [5](https://www.bloomberg.com/news/articles/2026-01-28/ai-customer-support-startup-decagon-valued-at-4-5-billion). By January 2026 the company had raised $481 million over ten rounds and was valued at $4.5 billion[6](https://www.cbinsights.com/company/decagon/financials).
| Key fact | Detail |
|---|---|
| Founded | August 2023, by Jesse Zhang and Ashwin Sreenivas, who met at a founders' retreat in Utah[1](https://sacra.com/c/decagon/) • [7](https://www.forbes.com/sites/rashishrivastava/2024/10/15/this-companys-ai-agents-won-contests-to-secure-big-customers-now-its-raising-65-million/) |
| Product | AI agents for chat, email, voice, and SMS, built on Agent Operating Procedures (AOPs) and a network of frontier and specialized models[8](https://decagon.ai/product/overview) |
| Funding | $481 million over 10 rounds; $65M Series B at $650M (Oct 2024), $131M Series C at $1.5B (June 2025), $250M Series D at $4.5B (Jan 2026)[6](https://www.cbinsights.com/company/decagon/financials) • [7](https://www.forbes.com/sites/rashishrivastava/2024/10/15/this-companys-ai-agents-won-contests-to-secure-big-customers-now-its-raising-65-million/) • [3](https://decagon.ai/blog/series-c-announcement) • [2](https://www.businesswire.com/news/home/20260128580542/en/Decagons-Valuation-Triples-to-%244.5-Billion-as-it-Ushers-in-the-Age-of-AI-Concierge) |
| Customers | More than 100 large enterprises, including Avis Budget Group, Block, Deutsche Telekom, 1-800-Flowers, Quince, Oura Health, and Away Travel[2](https://www.businesswire.com/news/home/20260128580542/en/Decagons-Valuation-Triples-to-%244.5-Billion-as-it-Ushers-in-the-Age-of-AI-Concierge) • [9](https://techcrunch.com/2026/03/04/decagon-completes-first-tender-offer-at-4-5b-valuation/) |
| Reported outcomes | Average deflection nearing 70% (June 2025) and exceeding 80% (Jan 2026); Duolingo above 80%; Oura reported a 3x CSAT increase; ClassPass a 95% decrease in support conversation cost[3](https://decagon.ai/blog/series-c-announcement) • [2](https://www.businesswire.com/news/home/20260128580542/en/Decagons-Valuation-Triples-to-%244.5-Billion-as-it-Ushers-in-the-Age-of-AI-Concierge) |
| Pricing | Per-conversation and higher-priced per-resolution models on top of a reported $50,000 annual platform fee; Vendr reports a median annual contract of about $386,000[10](https://fin.ai/learn/sierra-vs-decagon-vs-ada) |
| Revenue | Undisclosed since late 2024, when ARR passed eight figures; Sacra estimates $44M annualized at end of 2025, Forbes estimates $12M for 2025[9](https://techcrunch.com/2026/03/04/decagon-completes-first-tender-offer-at-4-5b-valuation/) • [1](https://sacra.com/c/decagon/) • [11](https://www.forbes.com/sites/alexyork/2026/02/06/ai-agent-startup-decagon-triples-valuation-to-45-billion/) |
## History and founding
Jesse Zhang teamed up with Ashwin Sreenivas, whom he met at a founders' retreat in Utah, in August 2023 to found Decagon[7](https://www.forbes.com/sites/rashishrivastava/2024/10/15/this-companys-ai-agents-won-contests-to-secure-big-customers-now-its-raising-65-million/). The company spent roughly its first year in stealth, emerging in time to raise a $65 million Series B led by [Bain Capital Ventures](https://www.edgepedia.org/bain-capital-ventures) in October 2024, which valued it at $650 million with $100 million in total funding; the round was earmarked for team growth and adding a voice feature[7](https://www.forbes.com/sites/rashishrivastava/2024/10/15/this-companys-ai-agents-won-contests-to-secure-big-customers-now-its-raising-65-million/).
Growth after the stealth exit was rapid by the company's own account: Decagon reported growing from zero to eight-figure annual recurring revenue in the year before June 2025[3](https://decagon.ai/blog/series-c-announcement).
## Product and technology
**Agent Operating Procedures.** Decagon's central abstraction is the Agent Operating Procedure (AOP): customer-experience teams write agent behavior in natural language, and the instructions automatically compile into code that handles complex, real-world situations without custom engineering for each new use case[3](https://decagon.ai/blog/series-c-announcement). Non-technical teams architect and iterate on agent logic with AOPs and a companion tool called Duet, while technical teams retain visibility and control over guardrails, integrations, and versioning[8](https://decagon.ai/product/overview). Duet analyzes customer conversations to identify workflow gaps and automatically generates, tests, and refines AOPs, compressing what the company describes as days of iteration into minutes[8](https://decagon.ai/product/overview).
**Models.** Every Decagon agent runs on a proprietary engine powered by a network of frontier and specialized models[8](https://decagon.ai/product/overview). Sacra reports that these combine third-party models from OpenAI, Anthropic, and Cohere with proprietary fine-tuned models trained on enterprise data[1](https://sacra.com/c/decagon/). Anthropic's case study states that Decagon's agents are built on Claude, chosen by Sreenivas for its ability to follow intricate multi-step processes with high accuracy and for enterprise-grade security; Decagon reports reducing over-inferencing rates, cases where the agent draws conclusions beyond what the evidence supports, by 70% after using Claude[4](https://claude.com/customers/decagon).
**Integrations and channels.** The product integrates with ticketing platforms, CRMs, knowledge bases, and contact-center-as-a-service providers, and enforces guardrails for critical operations such as identity verification and refunds[8](https://decagon.ai/product/overview). Agents deploy across chat, email, voice, and SMS, and the company says deployment takes days rather than months[12](https://www.businesswire.com/news/home/20251110484211/en/Decagon-Announces-Commercial-Pilot-with-Deutsche-Telekom-and-Strategic-Investment-from-T.Capital-to-Fuel-Enterprise-Growth). The voice feature added after the Series B extended the platform beyond text[7](https://www.forbes.com/sites/rashishrivastava/2024/10/15/this-companys-ai-agents-won-contests-to-secure-big-customers-now-its-raising-65-million/).
## Customers and reported outcomes
Decagon's named customers include Duolingo, Rippling, Substack, Oura, ClassPass, [Chime](https://www.edgepedia.org/chime-company), and, added in the year to January 2026, Avis Budget Group, Block, Deutsche Telekom, 1-800-Flowers, Quince, and Away Travel[3](https://decagon.ai/blog/series-c-announcement) • [2](https://www.businesswire.com/news/home/20260128580542/en/Decagons-Valuation-Triples-to-%244.5-Billion-as-it-Ushers-in-the-Age-of-AI-Concierge) • [9](https://techcrunch.com/2026/03/04/decagon-completes-first-tender-offer-at-4-5b-valuation/). The company says its base spans Fortune 100 enterprises in airlines, banking, telecom, and retail alongside technology companies such as Oura Health, Affirm, and Chime[2](https://www.businesswire.com/news/home/20260128580542/en/Decagons-Valuation-Triples-to-%244.5-Billion-as-it-Ushers-in-the-Age-of-AI-Concierge).
The outcome figures are company-reported. In June 2025 Decagon stated that its customers achieved average deflection rates, a measure of conversations handled without a human agent, nearing 70%, with Duolingo above 80%; Oura reported a 3x increase in CSAT and ClassPass a 95% decrease in the cost of support conversations[3](https://decagon.ai/blog/series-c-announcement). By the January 2026 Series D announcement the claimed platform average had risen to above 80%[2](https://www.businesswire.com/news/home/20260128580542/en/Decagons-Valuation-Triples-to-%244.5-Billion-as-it-Ushers-in-the-Age-of-AI-Concierge). Use cases include Substack agents that help writers with platform questions, publishing issues, and monetization, and Rippling's replacement of automated decision-tree logic with an agent for HR and payroll guidance[4](https://claude.com/customers/decagon). Bloomberg describes agents that track orders, issue returns, and book travel[5](https://www.bloomberg.com/news/articles/2026-01-28/ai-customer-support-startup-decagon-valued-at-4-5-billion).
Of the more than 100 new enterprise customers added in the year to January 2026, Decagon reports that 33% had no prior AI automation, 53% replaced legacy systems such as IVRs, ticketing tools, or CRM-based agents, and 14% chose Decagon over building in-house[2](https://www.businesswire.com/news/home/20260128580542/en/Decagons-Valuation-Triples-to-%244.5-Billion-as-it-Ushers-in-the-Age-of-AI-Concierge).
## Business model and pricing
Sacra describes two pricing models: a per-conversation model charging a fixed rate for each incoming customer inquiry with volume discounts, and a higher-priced per-resolution model that charges only when the AI resolves an issue without human intervention[1](https://sacra.com/c/decagon/). Third-party procurement data from Vendr, reported by a vendor comparison site, indicates a median Decagon annual contract of approximately $386,000 and a $50,000 annual platform fee included in all contracts before usage charges[10](https://fin.ai/learn/sierra-vs-decagon-vs-ada).
## Funding and valuation
The funding trajectory since late 2024:
- **October 2024**: $65 million Series B led by Bain Capital Ventures, at a $650 million valuation, bringing total funding to $100 million[7](https://www.forbes.com/sites/rashishrivastava/2024/10/15/this-companys-ai-agents-won-contests-to-secure-big-customers-now-its-raising-65-million/).
- **June 2025**: $131 million Series C at a $1.5 billion valuation, one year after emerging from stealth, co-led by Accel and [Andreessen Horowitz](https://www.edgepedia.org/andreessen-horowitz) with participation from A*, Bain Capital Ventures, BOND, Avra, Forerunner, and [Ribbit Capital](https://www.edgepedia.org/ribbit-capital)[3](https://decagon.ai/blog/series-c-announcement).
- **January 2026**: $250 million Series D led by [Coatue Management](https://www.edgepedia.org/coatue-management) and Index Ventures, tripling the valuation to $4.5 billion in under six months; new investors included ChemistryVC, Definition Capital, and Starwood Capital, with continued support from a16z, A*, Accel, Avra, Bain Capital Ventures, Elad Gil, Forerunner, Ribbit Capital, and T.Capital[2](https://www.businesswire.com/news/home/20260128580542/en/Decagons-Valuation-Triples-to-%244.5-Billion-as-it-Ushers-in-the-Age-of-AI-Concierge).
- **March 2026**: the company completed its first tender offer at the $4.5 billion valuation[9](https://techcrunch.com/2026/03/04/decagon-completes-first-tender-offer-at-4-5b-valuation/).
[CB Insights](https://www.edgepedia.org/cb-insights) records $481 million raised over 10 rounds from 40 investors[6](https://www.cbinsights.com/company/decagon/financials).
**Revenue estimates conflict.** Decagon has not disclosed revenue since late 2024, when its ARR surpassed eight figures[9](https://techcrunch.com/2026/03/04/decagon-completes-first-tender-offer-at-4-5b-valuation/). Sacra estimates $44 million in annualized revenue at the end of 2025, rising to $100 million by July 2026, with Q3 2025 GAAP revenue and ARR each growing more than 3x year over year[1](https://sacra.com/c/decagon/). Forbes, writing in February 2026, put estimated 2025 revenue at $12 million, noting that Decagon competes against [Salesforce](https://www.edgepedia.org/salesforce), Intercom, and Zendesk, companies whose revenue far exceeds that figure[11](https://www.forbes.com/sites/alexyork/2026/02/06/ai-agent-startup-decagon-triples-valuation-to-45-billion/). The two estimates differ by nearly a factor of four and have not been reconciled; both are estimates rather than company disclosures.
## Competitive landscape and market
Sierra is a dedicated competitor, which reached a $4.5 billion valuation with $175 million in Series B funding as of October 2024 and counts [WeightWatchers](https://www.edgepedia.org/ww-international) and SiriusXM among its clients[1](https://sacra.com/c/decagon/). Competitors also include the incumbent support-software vendors Salesforce, Zendesk, and Intercom[11](https://www.forbes.com/sites/alexyork/2026/02/06/ai-agent-startup-decagon-triples-valuation-to-45-billion/). On pricing practice, Sierra does not charge for unresolved conversations in most cases, while Ada charges for every conversation regardless of outcome; Decagon offers both per-conversation and per-resolution models[10](https://fin.ai/learn/sierra-vs-decagon-vs-ada).
The market context is a large labor pool being addressed by automation. Gartner estimates there are 17 million contact center agents worldwide, a workforce that companies including Decagon, Sierra, Intercom, and Parloa aim to automate[9](https://techcrunch.com/2026/03/04/decagon-completes-first-tender-offer-at-4-5b-valuation/). One secondary estimate cited by Sacra projects the customer support automation market growing from $308 million in 2022 to $2.89 billion by 2032[1](https://sacra.com/c/decagon/).
## Measurement, guardrails, and reliability
Decagon's stated controls for high-stakes operations are strict guardrails around identity verification and refunds, integrations that let technical teams manage versioning, and a QA product called Watchtower that provides always-on monitoring with custom natural-language evaluation criteria[8](https://decagon.ai/product/overview) • [10](https://fin.ai/learn/sierra-vs-decagon-vs-ada). The [Deutsche Telekom](https://www.edgepedia.org/deutsche-telekom) pilot is structured around measurable targets: resolution time, CSAT/NPS, and recontacts, with focused scope and week-over-week progress[12](https://www.businesswire.com/news/home/20251110484211/en/Decagon-Announces-Commercial-Pilot-with-Deutsche-Telekom-and-Strategic-Investment-from-T.Capital-to-Fuel-Enterprise-Growth).
Independent research frames what production support agents must be measured against. A peer-reviewed survey of LLM-based multi-turn conversational agents organizes evaluation around three targets: task success, response quality, and end-to-end user experience[13](https://dl.acm.org/doi/10.1145/3793671). A paper from Nubank, a company with more than 100 million users, describes a production framework combining structured context engineering, systematic human-in-the-loop prompt iteration, and rigorous LLM evaluation, concluding that large-scale deployments depend on evaluation-driven development rather than raw model capability[14](https://dl.acm.org/doi/10.1145/3770855.3818332). These dimensions correspond to the metrics Decagon and its customers report.
## Recent developments
The company's trajectory since its August 2023 founding compresses several industry shifts. It raised its $65 million Series B at a $650 million valuation in October 2024, doubled to $1.5 billion by June 2025, and tripled again to $4.5 billion by January 2026, with a tender offer completed in March 2026[7](https://www.forbes.com/sites/rashishrivastava/2024/10/15/this-companys-ai-agents-won-contests-to-secure-big-customers-now-its-raising-65-million/) • [3](https://decagon.ai/blog/series-c-announcement) • [2](https://www.businesswire.com/news/home/20260128580542/en/Decagons-Valuation-Triples-to-%244.5-Billion-as-it-Ushers-in-the-Age-of-AI-Concierge) • [9](https://techcrunch.com/2026/03/04/decagon-completes-first-tender-offer-at-4-5b-valuation/). Product scope has widened from support tickets toward what the company calls the "AI concierge": agents that take actions such as booking travel and issuing returns, not only answering questions[2](https://www.businesswire.com/news/home/20260128580542/en/Decagons-Valuation-Triples-to-%244.5-Billion-as-it-Ushers-in-the-Age-of-AI-Concierge) • [5](https://www.bloomberg.com/news/articles/2026-01-28/ai-customer-support-startup-decagon-valued-at-4-5-billion). Strategic validation came in November 2025, when Deutsche Telekom launched a commercial pilot and its corporate venture arm T.Capital invested[12](https://www.businesswire.com/news/home/20251110484211/en/Decagon-Announces-Commercial-Pilot-with-Deutsche-Telekom-and-Strategic-Investment-from-T.Capital-to-Fuel-Enterprise-Growth). The customer mix also shows the displacement pattern: a majority of new enterprise customers replaced legacy systems such as IVRs and ticketing tools rather than adopting AI automation for the first time[2](https://www.businesswire.com/news/home/20260128580542/en/Decagons-Valuation-Triples-to-%244.5-Billion-as-it-Ushers-in-the-Age-of-AI-Concierge).
## References
1. [Decagon revenue, valuation & funding, Sacra](https://sacra.com/c/decagon/)
2. [Decagon's Valuation Triples to $4.5 Billion as it Ushers in the Age of AI Concierge, Business Wire](https://www.businesswire.com/news/home/20260128580542/en/Decagons-Valuation-Triples-to-%244.5-Billion-as-it-Ushers-in-the-Age-of-AI-Concierge)
3. [Decagon raises Series C at $1.5B valuation, Decagon blog](https://decagon.ai/blog/series-c-announcement)
4. [Decagon Claude Platform (API) case study, Anthropic](https://claude.com/customers/decagon)
5. [AI Customer Support Startup Decagon Valued at $4.5 Billion, Bloomberg](https://www.bloomberg.com/news/articles/2026-01-28/ai-customer-support-startup-decagon-valued-at-4-5-billion)
6. [Decagon Stock Price, Funding, Valuation, Revenue & Financial Statements, CB Insights](https://www.cbinsights.com/company/decagon/financials)
7. [This Company's AI Agents Won Contests To Secure Big Customers. Now It's Raised $65 Million, Forbes](https://www.forbes.com/sites/rashishrivastava/2024/10/15/this-companys-ai-agents-won-contests-to-secure-big-customers-now-its-raising-65-million/)
8. [Products for Conversational AI, Decagon](https://decagon.ai/product/overview)
9. [Decagon completes first tender offer at $4.5B valuation, TechCrunch](https://techcrunch.com/2026/03/04/decagon-completes-first-tender-offer-at-4-5b-valuation/)
10. [Sierra vs Decagon vs Ada: 2026 AI Agent Comparison, Fin.ai](https://fin.ai/learn/sierra-vs-decagon-vs-ada)
11. [AI Agent Startup Decagon Triples Valuation To $4.5 Billion, Forbes](https://www.forbes.com/sites/alexyork/2026/02/06/ai-agent-startup-decagon-triples-valuation-to-45-billion/)
12. [Decagon Announces Commercial Pilot with Deutsche Telekom and Strategic Investment from T.Capital, Business Wire](https://www.businesswire.com/news/home/20251110484211/en/Decagon-Announces-Commercial-Pilot-with-Deutsche-Telekom-and-Strategic-Investment-from-T.Capital-to-Fuel-Enterprise-Growth)
13. [Evaluating LLM-based Agents for Multi-turn Conversations: A Survey, ACM TIST](https://dl.acm.org/doi/10.1145/3793671)
14. [Building Customer Support AI Agents at 100M-User Scale: An Evaluation-Driven Framework, ACM SIGKDD](https://dl.acm.org/doi/10.1145/3770855.3818332)
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*Topic: Encyclopedia › Technology and the built world › Computing and digital systems › Modern AI: foundation models, generative AI, and the AI industry › AI companies, people, and products › AI startups and application companies › Enterprise and vertical AI applications*
*Initially written Sep 17, 2026 · Reviewed: Oct 15, 2026 · Edited: Oct 11, 2026; Oct 15, 2026 · Last review: Oct 15, 2026*
*Copyright 2026 EdgeChat AI, a subsidiary of Biostate AI.*
License: Edgepedia Community License 1.0, https://www.edgepedia.org/edgepedia/license