AI-powered interactive content startup Flam has raised $40 million in a Series B funding round led by QED Investors, as the company looks to expand its AI models, product portfolio and enterprise business globally.
The round also saw participation from Claypond Capital, Martin Chavez, Datadog CEO Olivier Pomel, Venky Harinarayan and Shah Rukh Khan. Existing investors RTP Global and Dovetail also participated in the latest financing. The round takes Flam's total funding to approximately $62 million.
Founded in 2021 by BITS Pilani alumni Shourya Agarwal, Malhar Patil and Amit Gaiki, Flam operates from Bengaluru and San Francisco, with teams in India and Japan. The company develops AI-powered technology that allows businesses to create interactive videos, 3D experiences and digital characters that audiences can engage with.
Flam said it has signed more than 100 enterprise customers over the past six quarters. Its technology is being used across marketing, product visualisation, learning and development, entertainment, fan engagement, customer support and sales.
The company currently offers several interactive content technologies. Flicks enables videos in which elements such as people, products or scenes can change during playback. Forge is an AI editing model that allows specific elements within an image to be modified while retaining other parts of the reference image.
Its Airboards product provides interactive 3D content through a camera interface and supports touch, voice and haptic interactions. Flam also operates Fable, an image-to-video model, and is developing Visual Agents, digital characters designed to hold conversations and perform actions.
The company said it holds more than 15 patents across its technology portfolio. It has also developed its own AI stack for visual agents, including technologies for facial expressions, multilingual voice interactions and large language model-based responses.
Shourya Agarwal, founder of Flam, said the company sees interactive experiences as a potential next stage in the evolution of online content after text, images and video. The company is positioning its technology around enabling enterprises to build and deploy these experiences at scale.
Flam plans to use the fresh capital to increase research and development across its AI models, expand its product suite and grow enterprise sales internationally.
The startup previously raised $14 million in a Series A round led by RTP Global in May 2025. The latest financing comes as generative AI companies increasingly move beyond text and conventional video generation into interactive and multimodal content, opening new applications for brands across marketing, commerce and customer engagement.
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