Flam Raises $40 Million Series B Led by QED Investors as India, Overseas Business Hits 50:50 Split

Epil Bodra

| September 15 | Business Stories, Funding Feed

Flam, Flam funding, Flam Series B, QED Investors, AI startup, Shourya Agarwal, Shah Rukh Khan, RTP Global, Dovetail, AI interactive content, artificial intelligence, startup funding, venture capital, India startups, enterprise AI, $100 million ARR

AI interactive content startup Flam has secured $40 million in Series B funding, taking its total equity financing to $62.5 million. The company is now aiming for $100 million in annual recurring revenue within the next 18 to 24 months, while building on a customer base that has crossed 100 enterprises.

Flam has raised $40 million in a Series B round led by QED Investors, giving the AI interactive content company fresh capital to develop its technology and pursue a wider global enterprise market.

The funding round also saw participation from Claypond Capital, Martin Chavez, Olivier Pomel, Venky Harinarayan and actor Shah Rukh Khan, while existing investors RTP Global and Dovetail returned for the round. The company plans to channel the money into research and development for its AI models, expansion of its product portfolio and growth of enterprise sales internationally.

Flam has not disclosed the valuation attached to the Series B round. Tracxn data cited in the report places its previous valuation at $32.3 million.

Flam Sets Sights on $100 Million ARR

One of the more ambitious markers attached to Flam’s next phase is its revenue target.

Founder Shourya Agarwal said the company is aiming to reach $100 million in annual recurring revenue over the next 18 to 24 months. Flam did not disclose its current ARR, making the scale of growth needed to reach that target unclear.

The company’s expansion is already visible in its enterprise customer count. Flam now works with more than 100 enterprise customers, compared with roughly 30 to 40 a year earlier.

Its customer roster includes Google, Reliance and Hyundai, with expansion in the United States and Japan contributing significantly to the increase.

Just as notably, Flam says its business is now divided roughly 50:50 between India and international markets. The US and Japan account for most of its overseas business, followed by the UAE, Southeast Asia and other markets.

That balance gives the latest fundraise a broader context. Flam is no longer building solely around the Indian enterprise market. International expansion has become an equally important part of its business.

Google Among Enterprises Using Flam’s Interactive Content

Flam’s technology is designed to turn conventional digital content into interactive experiences.

Google has used the platform for interactive content connected with Pixel phones, YouTube Shorts and Gemini, along with marketing and product visualisation applications.

Founded in 2021 by BITS Pilani alumni Shourya Agarwal, Malhar Patil and Amit Gaiki, Flam positions itself as an AI-native interactive content platform. Its technology can transform static or passive media into 3D, mixed-reality and AI-agent experiences.

The company is headquartered in San Francisco, with teams in India and Japan. Its experiences work through smartphone cameras and do not require users to download a separate app.

Flam says its technology is being used across areas including marketing, product visualisation, learning and development, entertainment, customer support and sales.

Total Equity Funding Reaches $62.5 Million

Before the new Series B round, Flam had raised $22.5 million in equity funding.

That included a $14 million round in April 2025, backed by Turbostart, Inventus Capital Partners, RTP Global and Dovetail Capital. The latest $40 million investment brings Flam’s total equity funding to $62.5 million.

The company currently offers three interactive content formats and holds more than 15 patents. Its products span interactive video, 3D content and AI-generated visual experiences.

Flam has also developed what it calls visual agents, human-like AI characters capable of holding conversations and performing actions, with responses returned in under two seconds.

QED Investors co-founder and managing partner Nigel Morris said the investor saw Flam as pursuing an area of the content ecosystem that remains comparatively untouched, rather than simply optimising existing forms of AI-generated content.

Financial Details Remain Limited

Flam has not disclosed its latest revenue or loss figures.

The available historical numbers cited from Tracxn are considerably older. They show revenue of ₹8.5 lakh in FY22 and ₹14.4 lakh in FY23. The company recorded a ₹57 lakh net loss in FY22, before reporting a ₹5.7 lakh net profit in FY23.

Those figures predate Flam’s recent expansion and therefore do not provide a current picture of the company’s financial scale. For now, the more relevant indicators are its growing enterprise base, the increasingly international mix of its business and its stated $100 million ARR target.

With the Series B completed, Flam’s next test will be converting that expanding customer footprint and product range into the level of recurring revenue it is targeting over the coming two years.

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