Eppo Lands New Cash to Grow App Website and AI Experimentation Business
3 min read
Eppo, a company focused on app and website testing with a strong AI component, has successfully secured additional funding.
With its new funding round, the company aims to expand its AI experimentation tools, enhancing services and driving growth.
The Growing AI Industry
The AI industry is booming, with companies eager to adopt the latest models to stay ahead. According to a tech consulting firm, nearly 10% of businesses plan to spend $25 million on AI initiatives this year.
However, the return on investment (ROI) for these hefty investments remains uncertain. A recent report from Gartner indicates that half of AI leaders are unsure how to measure or demonstrate the value of their AI projects.
Eppo’s Unique Approach
Chetan Sharma, a former Airbnb data scientist, argues that determining AI ROI doesn’t have to be difficult with the right tools. Sharma co-founded Eppo, a platform that allows users to evaluate and customize AI models for specific needs. Eppo also offers general A/B testing for apps and websites.
“With new AI models launching weekly and companies pouring millions into them, A/B testing offers a cost-effective way to evaluate their effectiveness without overspending,” Sharma stated. “Eppo helps companies identify which models truly deliver value.”
Competition and Market Position
Eppo faces competition from other experimentation and A/B testing startups like Split, Statsig, and Optimizely. Additionally, tech giants like AWS, Microsoft Azure, and Google Cloud offer a range of model fine-tuning and evaluation tools.
However, Sharma claims Eppo stands out due to features like its “contextual bandit” system. This system automatically identifies new variants of websites, apps, or AI models and actively assesses their performance by directing more traffic to them.
“Experimentation drives velocity and accelerates growth by stripping away bureaucratic decisions while tightly linking initiatives to growth metrics,” Sharma explained. “Eppo’s live ‘online-eval’ tests reveal whether premium models improve metrics.”
Success and Clientele
Since launching out of stealth in 2022, Eppo has attracted several hundred enterprise customers, including well-known names like Twitch, SurveyMonkey, DraftKings, and Coinbase.
Alexis Weill, head of data at Perplexity, praised Eppo for significantly scaling the number of experiments they run concurrently. This ability has made Eppo a valuable partner for many high-profile companies.
Investors are also showing confidence in Eppo. The company recently closed a $28 million Series B round, led by Innovation Endeavors, with participation from Icon Ventures, Amplify Partners, and Menlo Ventures.
Future Plans and Goals
The new funding values Eppo at $138 million and brings its total raised to $47.5 million. Sharma emphasized that the capital will be used to enhance Eppo’s marketing, AI experimentation capabilities, and analytics offerings.
San Francisco-based Eppo currently employs 45 people and plans to expand its team to 65 by the end of the year. This growth underscores the increasing demand for Eppo’s services.
“The rise of AI has created an adapt-or-die mentality,” Sharma said. “Many companies are now seeking out Eppo to replace expensive in-house experimentation tools due to layoffs and high employee turnover.”
Eppo’s Market Impact
The landscape for experimentation tools is highly competitive, but Eppo has carved out a niche by addressing the unique needs of its clients. Its tools allow businesses to make smarter, more sustainable decisions amid rapid innovation and rising costs.
Eppo’s focus on live online evaluation tests ensures that clients can quickly determine the effectiveness of their AI models, driving better resource allocation and faster growth.
As companies continue to navigate the complexities of AI integration, platforms like Eppo will play a crucial role in shaping the future of the industry.
This latest funding round signals strong investor confidence in Eppo’s vision and capabilities.
As Eppo expands, it will continue to drive innovation in AI experimentation and A/B testing, helping businesses thrive in a competitive landscape.
About The Author
