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Menlo’s Investment in OfferFit: Building the ML-Powered, Automated Experimentation Platform Marketers Need

November 14, 2023

Today’s lifecycle marketers are charged with much more than producing engaging content for users—they must drive revenue at a time when we’re all being asked to do more with less. This may be through increased orders, membership renewals, referrals, or any other high-value activities. But even with the abundance of technology and resources available today, many marketers still find it hard to develop a successful strategy—those who fail to go deeper and personalize the customer experience from end to end leave money on the table. 

It’s universally understood that content that resonates with one customer may not resonate well with another. At the same time, we realize that mass personalization—where every user is getting the right channel at the right time with the right incentive, all tailored to the specific goal of the marketer—is ambitious. 

It’s a challenge that I know well (my wife, too!). We spent years in our previous operating roles being pitched and exploring solutions to no avail. That’s because most solutions in the marketing stack historically focused on a particular channel, variable, or use case, and rarely worked as intended. When companies try to solve this problem by deploying engineering resources in-house to build custom ML models, they often struggle to maintain and update these models to reflect the changing marketing landscape and evolving user behavior—and let’s remember how expensive this is to do! Fast forward a few years and with the advancements in customer data and AI, this might finally be the moment for someone to come along and deliver on this promise—enter OfferFit.

OfferFit is an ML-powered, automated experimentation and personalization platform for lifecycle marketers. It has built what others have not: a pliable, multivariate reinforcement learning engine to power end-to-end, unique experiences for users across multiple channels and use cases. So far, the platform has seen impressive results across industries, including significant uplift for Brinks Home, Just Energy, Foxtel, Engie, Liberty Latin America, and many others. Having used 90% of the tools in this market, OfferFit is the closest I have seen to something fulfilling the promise of truly automated, 1:1 personalization. It just works. 

OfferFit was started by two unique founders, George Khachatryan and Victor Kostyuk, who saw this problem firsthand at large consulting firms where they had to recreate the wheel for each engagement by building custom models from scratch. Drawing on their friendship from the mathematics Ph.D. program at Cornell, they remained close and eventually knew they had to partner to create a platform that allowed every company to run automated experimentation and personalization at scale.

OfferFit co-founders Victor Kostyuk (CTO) and George Khachatryan (CEO)

From the first meeting with George and Victor, it was apparent that they were not regurgitating the same pitch I had heard before—their methodical and rigorous approach to building the platform and technological sophistication immediately caught my attention—this was the team that could finally make this marketing “holy grail” a reality.

We’re thrilled to lead OfferFit’s Series B and believe it delivers a category-disrupting solution at a time when the marketing world is looking to embrace AI. We look forward to supporting the entire OfferFit team in this next chapter.