Flam raises $40m in Series B funding to scale AI interactive content

AI interactive content startup Flam has secured $40 million in Series B funding in a round led by QED Investors, as the company looks to expand its enterprise footprint and deepen investment in its proprietary AI models.

The round also drew support from Claypond Capital, Martin Chavez, Olivier Pomel, Venky Harinarayan, and Shah Rukh Khan. Existing backers RTP Global and Dovetail also increased their commitments, signaling continued confidence in Flam’s growth trajectory.

The company says it has signed more than 100 enterprise customers in the past six quarters, with clients including Google, Emirates, and KFC. Those customers are using Flam’s technology across a wide range of functions, from marketing and product visualization to learning and development, entertainment, fan engagement, customer support, and sales.

The new capital will be used to accelerate research and development for Flam’s AI stack, broaden its product portfolio, and scale its enterprise sales efforts internationally.

Founder Shourya Agarwal said the company is betting that interactivity will define the next phase of digital media.

“Flam is built on a simple observation. 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,” Agarwal said.

“The demand was always there. The technology wasn’t. We have made interactivity effortless to build and deploy at enterprise scale.”

Flam has built a sizable technical moat around that vision, with more than 15 patents and a product lineup spanning three core interactive formats.

Its Flicks product offers interactive video that can dynamically switch a person, product, or scene during playback. Flam says this is powered by a patented compression algorithm and can be delivered programmatically with a 50ms time-to-first-buffer.

The company’s editing model, Forge, allows users to modify only selected elements of an image using reference inputs, a feature aimed at simplifying creative production workflows.

Another product, Airboards, brings high-fidelity 3D content into a camera-based interface with support for touch, voice interaction, and haptic feedback. Flam says its 3D streaming technology loads these experiences in about 300ms, with no need for users to install an app. Supporting that pipeline is Fable, an image-to-video model that generates assets as native alpha channel videos.

Flam is also pushing into conversational interfaces through its Visual Agents platform. Rather than text-based chatbots, the product presents users with human-like characters that can hold conversations and perform agentic actions in a video-call format.

The system combines several in-house models: Fantom for facial expression and identity preservation, Finesse for voice generation in multiple languages, and Falcon, a 26B-parameter mixture-of-experts large language model that delivers responses in 30ms time-to-first-token. According to Flam, the full pipeline can return an answer in under two seconds.

For investors, the appeal lies in Flam’s attempt to create a new layer of digital content rather than merely improve existing formats.

“Almost every frontier AI content company we see is optimizing what already exists,” said Nigel Morris, co-founder and managing partner at QED Investors. “Flam pointed at something else: how much of the content ecosystem is still untouched. That gap is bigger than most people think, and Flam is the first team we’ve seen with the infrastructure to go after it.”

Flam is also eyeing international growth opportunities, including in mobile-first regions where interactive formats may gain traction quickly.

“Nigeria is an exceptionally mobile-first market, with brands and consumers that adopt new forms of digital engagement very quickly,” said Seyi, CEO of SmartSense Technologies, Flam’s exclusive partner in Nigeria.

“Flam gives brands the ability to move beyond passive content and create experiences people can interact with, respond to and participate in. Our role at SmartSense is to bring that capability into the Nigerian market, localise it for real business use cases, and help brands, agencies and enterprises deploy it at scale.”

With fresh funding, a growing enterprise customer base, and a product suite aimed at making digital experiences more immersive, Flam is positioning itself at the intersection of AI, media, and enterprise software. Its central bet is clear: the next evolution of content will not just be watched, but actively experienced.