Melius Scales Revenue Following Product Pivot
AI-generated image · US National Wire
The AI creative platform raised $25 million after scrapping its original codebase to focus on asset generation.
Melius, a New York-based AI platform for generating videos, images, and ad campaigns, has raised $25 million in total funding. As TechCrunch first reported, the capital consists of a $20 million Series A led by CRV and a $5 million seed round led by General Catalyst.
The startup's current trajectory follows a complete strategic pivot. Co-founders Joowon Kim, Young Kim, and Arnav Ramu—all former engineers at the finance software company Ramp—originally built a performance marketing tool. However, Joowon Kim told TechCrunch that the team scrapped the entire codebase after six months because the original concept lacked "legs."
Following the pivot to an "agents lab for creative work," Melius emerged from stealth in July. The firm asserts it surpassed $1 million in annualized revenue in the two months following that debut.
While the sector is increasingly crowded, Joowon Kim told TechCrunch he is not concerned by competition. He specifically noted the growth of Higgsfield, which reached over $700 million in annualized revenue and a $5.4 billion valuation in August. Other competitors in the space include Flora AI and Krea. Kim maintains that the market size is sufficient to support multiple players, suggesting that the presence of various competitors indicates strong customer demand.