AI shopping startup Phia announced a US$35 million Series A funding round, led by Notable Capital with participation from Khosla Ventures and Kleiner Perkins. The company reached a valuation of US$185 million with this investment.
Phia, launched in April 2025 by Phoebe Gates and Sophia Kianni, has already attracted over one million users and partnered with more than 6,200 retail brands. The platform uses an AI shopping agent to provide consumers with real-time insights and personalised recommendations, aiming to improve conversion rates and reduce returns for its brand partners.
This substantial investment highlights a growing industry trend towards AI-driven commerce solutions. Phia's model suggests a shift where technology acts as a direct conduit between brands and consumers, offering measurable sales results. The funding will fuel further development of their AI infrastructure and expand product features.
For beauty and salon businesses, Phia's success signifies the increasing importance of sophisticated digital tools. While large brands can leverage such platforms, smaller independent businesses face the challenge of integrating similar AI capabilities to remain competitive and connect with a digitally native consumer base.
