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Artificial intelligence interactive content company Flam has raised $40 million in a Series B funding round led by QED Investors, as it seeks to expand its product capabilities and accelerate global enterprise adoption.
The round attracted participation from Claypond Capital, Martin Chavez, Olivier Pomel, Venky Harinarayan and Bollywood actor Shah Rukh Khan.
Existing investors RTP Global and Dovetail also increased their stakes in the company, according to a statement issued by Flam on Tuesday.
Flam expands enterprise customer base
Flam said it has secured more than 100 enterprise customers across six quarters, including Google, Emirates and KFC.
Its technology is being deployed across several use cases, including marketing, product visualisation, learning and development, entertainment, fan engagement, customer support and sales.
Shourya Agarwal, founder of Flam, said the company was built around the view that online content is moving from passive consumption towards interactive experiences.
“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.”
The company holds more than 15 patents and has developed a portfolio of AI-powered products and models designed to support interactive content creation and deployment.
AI-powered interactive content portfolio
Flam’s product suite includes Flicks, interactive videos that can switch a person, product or scene during playback. The company uses a patented compression algorithm to deliver the content programmatically, with a reported time-to-first-buffer of 50 milliseconds.
Its Forge editing model allows users to provide image references and modify only the specified element, while Airboards delivers high-fidelity 3D content through a camera interface with touch, voice and haptic interactions.
According to Flam, its 3D streaming technology loads Airboards in approximately 300 milliseconds without requiring users to install an application.
The company’s Fable image-to-video model generates assets as native alpha-channel videos, while its Visual Agents are human-like characters capable of holding conversations and taking agentic actions. The experience is designed to resemble a video call rather than a conventional chat interface.
Flam’s Fantom model supports facial expression generation through identity preservation and motion transfer, while Finesse enables voice generation in multiple languages.
Falcon, the company’s 26-billion-parameter mixture-of-experts large language model, delivers responses at a reported 30-millisecond time-to-first-token, with the full pipeline returning an answer in less than two seconds.
Investors back expansion of interactive internet
Nigel Morris, co-founder and managing partner at QED Investors, said Flam was addressing an underdeveloped segment of the AI content ecosystem rather than simply improving existing content formats.
“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,” Morris said.
“That gap is bigger than most people think, and Flam is the first team we’ve seen with the infrastructure to go after it.”
The company’s expansion strategy also includes a stronger presence in Nigeria through SmartSense Technologies, its exclusive partner in the country.
Dr. Seyi, CEO of SmartSense Technologies, said Nigeria’s mobile-first market and rapid adoption of new digital experiences made it a significant opportunity for Flam’s technology.
“Nigeria is an exceptionally mobile-first market, with brands and consumers that adopt new forms of digital engagement very quickly,” Dr. Seyi said.
“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.”
Funding to support global growth
Flam said the new capital will be used to advance research and development across its AI models, expand its product portfolio and scale enterprise sales internationally.
Founded in 2021 and headquartered in San Francisco, Flam has teams in India and Japan. The company currently operates five AI models, holds more than 15 patents and serves over 100 enterprise customers globally.
SmartSense Technologies is a Nigerian technology and market-development company focused on introducing advanced artificial intelligence and digital technologies to businesses, institutions and public-sector organisations across Africa.
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