US-based startup Conversion has raised US$28 million in a series A funding round led by Abstract, with participation from True Ventures and HOF Capital.

Conversion, founded around 2020 by Neil Tewari and James Jiao, provides AI-powered marketing automation tools for businesses.

The company says most of its customers are midsize businesses that have replaced older marketing software with its platform.

Conversion reported it is nearing US$10 million in annual recurring revenue, though this figure has not been independently verified.

Including this round, Conversion has raised a total of US$30 million since its inception.

🔗 Source: TechCrunch

🧠 Food for thought

1️⃣ AI marketing automation hits mainstream adoption as ROI becomes measurable

Conversion’s rapid growth to nearly $10 million ARR reflects a broader market shift where AI marketing tools are delivering proven returns rather than just promising future benefits.

Current data shows that 69.1% of marketers now utilize AI to enhance operations, leading to a 39% increase in ROI and a 37% reduction in marketing costs1.

This represents a significant maturation from experimental AI usage to core business operations, with marketers reporting 5-15% productivity increases through generative AI solutions2.

Companies like Function Growth have reallocated 30% of their team time to strategic initiatives after implementing AI tools, demonstrating the operational impact that drives customer willingness to switch platforms2.

The AI marketing market’s projected growth to $47.32 billion by 2025, with 88% of marketers expected to use AI in their operations, suggests Conversion entered the market precisely when demand was shifting from early adoption to mainstream necessity3.