AI Startup Fibr Raises $1.8 Million to Tackle Rising Customer Acquisition Costs

In response to the evolving digital marketing landscape and skyrocketing customer acquisition costs (CAC), startup Fibr has launched an AI-powered Personalization Hub for B2C marketers. The company recently secured $1.8 million in a pre-seed funding round led by Accel Partners, with participation from 2AM VC and other notable angel investors.

Founded in January 2023 by CEO Ankur Goyal and CPO Pritam Roy, Fibr aims to address the challenges faced by performance marketers in the wake of third-party cookie deprecation and stricter data privacy regulations. With CAC having doubled since 2022 and predictions of another doubling in 2024 due to Chrome’s impending changes, consumer businesses are feeling the pressure to optimize their marketing efforts.

Fibr’s platform offers scalable personalization across channels and audiences, including dynamic post-click experiences, to boost conversions and reduce CAC. The startup has introduced a unique pay-per-use model, with prices starting as low as $10, making it an affordable solution for businesses of all sizes.

Ankur Goyal, CEO of Fibr, highlighted the limitations of existing personalization tools, stating, “Most personalization tools out there are pretty outdated. They’re usually good at one thing – maybe web, ads, or email – but miss the big picture. They’ll throw in some generic pop-ups, stick names in emails, or run basic A/B. That’s not real personalization, you know? It doesn’t get how each customer’s journey is unique. What happens is marketers sign long pricey contracts and end up stuck with tools they can’t use well. And now With cookies going away and gen-AI booming, these old tools just can’t keep up.”

Goyal further explained Fibr’s approach, “That’s where Fibr comes in. Being marketers ourselves, we get it. Our gen-AI platform looks at everything – brand, channels, audience data – for a truly personal consumer experience, no matter where they interact with you. Our main product, Pilot, creates personalized 1:1 landing pages for every ad, email, communication – boosting conversions and reducing CAC. The best part? Our accessible pricing means you only pay for what you use, without long contracts. We want every marketer, big or small, to have access to powerful AI tools without breaking the bank. Our idea is simple: technology should work for marketers, not the other way around.”

Since its beta launch this year, Fibr has already attracted high-profile clients, including India’s largest insurance provider, a $3 billion broadband provider, and several lead-gen and D2C brands. Early adopters have reported approximately 10% improvement in conversions and lead quality, along with increased efficiency and productivity.

Prayank Swaroop, Partner at Accel, expressed enthusiasm for Fibr’s potential: “At Accel, we champion innovative business models and cutting-edge technologies. We believe Fibr’s landing page for every ad proposition could be a game-changer in the ad ecosystem for consumer companies, especially with CAC challenges due to privacy policies and cookie deprecation. Fibr’s affordable sachet pricing model, where users only pay for usage, disrupts traditional SaaS pricing, making it accessible for all marketers. We’re thrilled to support their vision of an AI-powered personalization hub that empowers marketers with greater efficiency and control to deliver superior results.”

Fibr’s platform is designed to comprehend brand guidelines, product positioning, audience personas, and channel marketing mix to deliver coherent, on-brand personalization. The company’s flagship product, Pilot, optimizes post-click experiences by creating 1:1 landing pages for every communication. Another product, Blocks, allows marketers to adapt existing content across various formats and channels.

With a focus on North America, Canada, and India, Fibr plans to expand its customer base and enhance its AI capabilities for personalization. The company is actively hiring diverse talent, including engineers, product marketers, and sales experts, to scale its offerings and further refine personalization workflows.

Fibr’s AI-powered personalization platform enters the market as a response to rising customer acquisition costs and evolving privacy regulations. While its pay-per-use model and early results appear promising, the long-term effectiveness of such tools varies by business. As with any new marketing technology, potential users should carefully evaluate Fibr’s offerings against their specific needs and conduct thorough testing before full adoption. The digital marketing landscape continues to evolve, and only time will reveal the true impact of such innovations on personalization and customer acquisition strategies.