OfferFit Secures $25M Series B Led by Menlo Ventures
OfferFit replaces A/B testing with AI-driven automated experimentation
BOSTON, November 14,2023 – OfferFit, the trailblazing marketing technology company empowering marketers to replace traditional A/B testing with automated experimentation, today announced its $25M Series B funding round led by Menlo Ventures. Ridge Ventures joined the round, along with earlier investors Canvas Ventures, Harmony Partners, Alumni Ventures Group, Carbide Ventures, and Burst Capital. Capital One Ventures, the strategic investment arm of Capital One, also participated in the round following Capital One’s success with OfferFit. JP Sanday from Menlo Ventures has joined the board, with Alexander Rosen from Ridge Ventures joining as an observer. OfferFit will use the funding to scale while also investing in product development.
OfferFit, cofounded in 2020 by Cornell math PhD’s George Khachatryan and Victor Kostyuk, implements reinforcement learning AI to accelerate experimentation for lifecycle marketers. The AI continuously learns and adapts in response to customer actions. Enterprises including MetLife, Foxtel Group, and Brinks Home have adopted OfferFit’s AI to automate experimentation.
"Marketing is undergoing a tectonic shift," said JP Sanday, Partner at Menlo Ventures. "AI makes it easy to create content, but how do you measure what is effective? The real power comes from leveraging AI with automated experimentation. OfferFit is the torchbearer in this space, helping businesses leverage 1:1 personalization to optimize critical lifecycle marketing campaigns like cross-sell, upsell, retention, referral, and winback.""
“Today, personalization is table stakes and leveraging AI-based experimentation platforms like OfferFit to automate learning is key to getting personalization right,” said Aparna Sarin, Chief Marketing Officer for Business Cards & Payments at Capital One. "This enables faster generation of data-driven insights into our customer preferences, allowing us to create more tailored offers and content, and lifting engagement.”
Companies recognize that loyal customers can be powerful advocates and create a flywheel effect. As costs to attract new customers skyrocket, referral sources and targeted campaigns that harness AI offer more efficient avenues for growth.
"We have invested in multiple successful AI companies, and we knew OfferFit had the potential to build a meaningful AI enterprise," said Mike Ghaffary, General Partner at Canvas Ventures, who led OfferFit’s Series A round. "OfferFit is on pace to triple this year, and they've never churned a customer, with every existing customer either expanding or in active discussions to do so."
“We’ll use this funding to continue to scale, of course,” said OfferFit's co-founder & CEO, George Khachatryan. "But we’ll also invest heavily in our product. We're making OfferFit quicker and easier to deploy, and giving marketers more tools to leverage the insights they gain from automating experimentation.”
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