AI-powered customer engagement startup Cheerio AI has raised ₹8 crore in a seed funding round led by Artha Venture Fund through its Artha Venture Fund II. The round also saw participation from Hyderabad Angels, TiE Angels, LetsVenture, Invention Engine, and several angel investors.
The fresh capital will help the company strengthen its artificial intelligence capabilities, scale product development, and accelerate global expansion plans.
Funding to Power Multi-Modal AI Development
Cheerio AI plans to use the newly raised funds to enhance its platform with multi-modal AI capabilities. A key focus area will be the development of a proprietary small-model large language model (LLM) designed specifically for ad and campaign generation.
The startup is also expanding its technology stack to support voice and video communication channels, enabling brands to interact with customers through multiple engagement formats. In addition, the company will invest in automation tools and enterprise-grade infrastructure to improve scalability and reliability for large clients.
Alongside product development, Cheerio AI plans to expand its team by hiring across engineering, AI research, enterprise sales, and customer success over the next six months.
Platform Focused on Customer Engagement and Retention
Founded by Nishant Das, Avinash, and Priam, Cheerio AI offers a platform that helps enterprises manage customer engagement across multiple communication channels.
The platform integrates marketing, sales, and customer support workflows into a single system, allowing companies to communicate with users through:
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WhatsApp
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Email
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SMS
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Social messaging platforms
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In-app communication channels
By combining automation with AI-driven insights, the platform aims to help businesses improve the Customer Acquisition Cost (CAC) to Lifetime Value (LTV) ratio—an important metric for sustainable growth.
Rapid Growth and Enterprise Adoption
Cheerio AI currently works with over 150 enterprise customers across six industries. According to the company, its retention automation platform has helped clients generate more than ₹500 crore in additional revenue.
The startup has also reported strong growth momentum, with revenue increasing 450% year-on-year over the past two years.
This rapid adoption reflects growing demand among enterprises for AI tools that can automate engagement while delivering more personalized customer experiences across multiple digital touchpoints.
The Bigger Picture: AI Transforming Customer Engagement
As businesses compete for customer attention across messaging platforms, email, and in-app communication, the ability to deliver personalized, real-time engagement is becoming essential.
AI-powered engagement platforms like Cheerio AI are emerging as critical tools for companies looking to:
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Improve customer retention
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Automate marketing workflows
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Optimize sales and support operations
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Increase revenue through better lifecycle management
With its latest funding round, Cheerio AI aims to strengthen its product capabilities and position itself as a global player in the rapidly evolving AI-driven customer engagement market.
Ruchi Kumar is the associate editor at Entrepreneur News Network and TVW News India, where she leads editorial strategy, brand storytelling, and startup ecosystem coverage. With a strong focus on innovation, business, and marketing insights, he curates impactful narratives that spotlight India’s evolving entrepreneurial landscape.