Bangalore: Cheerio AI, an AI-powered, all-in-one customer engagement platform focused on optimizing the CAC-to-LTV equation, today announced that it has raised ₹8 crores in a Seed funding round, led by Artha Venture Fund II (AVF II), alongside participation from Hyderabad Angels, TiE Angels, LetsVenture, VCMint, Invention Engine and notable angel investors including Arjun Vaidya, Anand Shahni (WedMeGood), Vivek Mathur (ex-Elevation Capital), Ajeet Khurana, as well as Cheerio AI’s early customers, Habuild and Nitin Verma (InstaAstro).
The funding will be used to build multi-modal AI capabilities, including a proprietary small-model LLM for ad generation, expanding Cheerio AI from messaging into voice & video, scaling AI-driven automations, and strengthening enterprise-grade capabilities- helping customers drive faster growth, higher engagement, and better ROI, while ensuring security and compliance.
Cheerio AI revenue has consistently increased 450% YoY over the last 2 years. Over the next 6 months, Cheerio AI also plans to grow its team across engineering, AI, enterprise sales, and customer success to support scaling and global expansion.
Speaking on the announcement, Nishant Das, Co-founder at Cheerio AI, said, “Avinash, Priam, and I are thrilled to partner with Artha and our co-investors. This investment is a strong validation of our vision and will enable us to significantly deepen our AI-driven automation capabilities while accelerating our expansion intothe enterprise segment. At CheerioAI, we envision a future where businesses operate with just three employees – the business founder, the technology founder, and Cheerio AI. This funding is a crucial step toward making that vision a reality.”
Cheerio AI addresses a critical challenge for modern enterprises: fragmented communication across multiple channels, resulting in inconsistent experiences, rising churn, and operational inefficiencies. The platform unifies marketing, support, and sales workflows across WhatsApp, email, SMS, social messaging, and in-app communication. Its AI-driven automation continuously optimises conversions, repeat purchases, and lifetime value, enabling non-technical teams to achieve high ROI, reduce manual effort, and deliver seamless customer experiences at scale.
“Our decision to invest in Cheerio AI isanchored in strong conviction around the long-term opportunity this team is building toward. As enterprises operate across an increasingly complex set of digital channels, customer retention and lifetime value optimization have become mission critical. Cheerio’s AI-native approach to unifying and orchestrating customer engagement positions it well to become a category-
defining platform in this space,” said Anirudh A. Damani, Managing Partner, Artha Venture Fund, “This round carried strong ecosystem validation from us. The opportunity was referred by one of our LP’s and after we shared it with founders in our portfolio for our feedback, two chose to invest alongside us. When experienced operators commit their own capital, it reinforces both founder quality and execution depth. That conviction mattered.”
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At Invention Engine, we stand behind exceptional founders taking bold product bets that reshape existing enterprise workflows. Cheerio’s team demonstrated both the ambition and execution we look for, and we’re confident their AI-led approach to customer engagement positions them to redefine how enterprises drive retention and lifetime value.’’ said Varun Aggarwal Founder Change Engine
Cheerio AI currently works with 150+ enterprise customers across 6 industries and has created 500 Cr+ additional revenue for its customers through intelligent retention automation. With growing demand for scalable, AI-driven engagement and retention solutions, the company aims to become the default platform for customer lifecycle orchestration, helping businesses transform fragmented interactions into seamless, outcome-driven engagements while continuing to innovate with applied AI.
The platform’s omnichannel engagement, workflow automation, and applied AI capabilities differentiate it from traditional point solutions, enabling non-technical teams to achieve high ROI, reduce manual effort, and improve customer experiences at scale.
Looking ahead, Cheerio AI is focused on long-term innovation and market leadership, expanding its AI capabilities across automation, agentic workflows, and performance optimization, while remaining modular to integrate evolving AI models. The company seeks to empower enterprises globally, automate the majority of customer touchpoints, improve retention, and maximise lifetime value, establishing itself as a leading Applied AI platform in the automations and customer engagement space.
-Based on Press Release
