AI Startup Cue Secures $5M Funding to Expand Customer Service Automation

AI-powered customer engagement platform Cue  has raised $5 million in a funding round co-led by Knife Capital  and FAM Investments to accelerate the development of its AI-driven customer service platform.

The company said the investment will support its vision of replacing fragmented customer service tools with a unified platform where AI agents can resolve customer issues across multiple communication channels, including WhatsApp, webchat, email, Messenger, SMS and voice.

Cue said its platform is already used by more than 500 companies, handling over 500 million customer messages and conversations annually. According to the company, more than 60% of customer conversations are resolved autonomously by its AI agents, while its annual recurring revenue (ARR) has grown by 160% year over year.

With the new funding, Cue plans to expand the capabilities of its AI agents beyond customer support. The company said future AI agents will be able to perform actions such as qualifying sales leads and adding them to customer relationship management (CRM) systems, booking appointments, sending payment links and securely resolving issues across integrated business systems.

Cue said the investment underscores growing demand for AI-powered automation in customer experience, as businesses increasingly seek platforms capable of managing customer interactions and executing tasks across multiple digital channels.