AI Shopping Agent Phia, Co-Founded by Bill Gates’ Daughter, Raises $35M in Series A

On January 27, Phia, an AI shopping agent co-founded by Phoebe Gates, the daughter of Bill Gates, announced that it has raised $35 million in a Series A round, valuing the company at $185 million. Beyond its headline appeal in the tech industry, the funding round is drawing attention as a move that reflects a deeper structural shift underway in the world of commerce.

For years, e-commerce has competed on how many products it can display to consumers. Today, however, what shoppers are seeking is no longer volume of information, but a sense of confidence and conviction. The time spent choosing, the mental fatigue of comparison, and the risk of returns—these frictions embedded in the buying process are now being fundamentally reexamined.

Rather than using AI to simply accelerate search or comparison, Phia aims to build a new layer that directly connects consumer intent with brands. Its rapid user adoption in the United States suggests that AI shopping is transitioning from a convenient add-on to an underlying assumption of how people shop.

1 Million Users and 6,200 Brand Partners in Just 10 Months

Phia launched in April 2025 and surpassed one million users within just ten months. The platform has partnered with more than 6,200 retail brands, ranging from contemporary labels to luxury fashion houses. Collectively, these brands represent billions of dollars in annual gross merchandise volume (GMV), with Phia driving millions of dollars in sales for brands each month.

Since launch, the company has achieved 11x revenue growth. Brands operating on Phia report tangible results, including 13% higher conversion rates, 30% stronger new customer acquisition, a 15% increase in average order value, and return rates reduced by more than 50%.

A Shopping Experience That Guides, Not Searches

What Phia offers is an AI shopping agent that differs fundamentally from traditional search-based experiences. Available as a mobile app and browser extension, the agent provides real-time recommendations while users are actively considering products, guiding them toward optimal choices.

By surfacing secondhand or resale items, as well as comparable alternatives at different price points, Phia enables shoppers to make decisions that reduce both cost and risk. While sustainability is part of the broader context, the company’s primary focus is on designing a shopping experience that is smart, efficient, and free from buyer’s remorse.

Founder-Led Organic Growth

A key driver behind Phia’s rapid growth is the founders’ own influence. Co-founders Phoebe Gates and Sophia Kianni have built a combined following of more than two million people across social and owned media, generating over 430 million views to date.

Through their podcast The Burnouts, the two candidly share the realities of building a startup while also interviewing prominent figures from business and entertainment. This approach—largely independent of traditional paid advertising—has resonated particularly strongly with younger audiences, including Gen Z.

Strengthening AI Infrastructure and the “Next Phase”

The newly raised capital will be used to strengthen Phia’s core AI and machine-learning infrastructure. The platform ingests billions of new product data points daily and processes millions of searches, already achieving an 80% reduction in search latency and a 40% increase in monetized GMV.

Looking ahead, Phia plans to deploy real-time large language model (LLM) agents capable of predicting consumer preferences and behaviors, enabling a deeper level of personalization. Upcoming features for users include taste-aware recommendations, individualized rewards, and community-curated digital closets.

Sophia Kianni commented: “We are a lean, high-agency team focused on building the category-defining AI commerce platform. If you want to execute with velocity and work on hard problems at the intersection of commerce and consumer AI, Phia is the place to do it.”

Phoebe Gates added: “We built Phia to be a win for shoppers and brands, helping people discover products they love while enabling brands to build stronger customer relationships. By aligning with real consumer intent and transparent preferences, we help partners acquire high-intent customers who buy with greater confidence and satisfaction.”

Investors on the Future of Commerce

Hans Tung, Managing Partner at Notable Capital and a 13-time Forbes Midas List honoree, views Phia as emblematic of the next era of shopping.

“Historically, shopping was built for an internet of pages and filters, not one mediated by agents,” Tung explained. “Now, AI sits between people and products, and the challenge is no longer access. It is understanding intent, taste, and trust in real time. Phia is building the intelligence layer for that shift.”

As it moves forward, Phia plans to expand its global-class team and grow its network of brand partners, positioning itself as an end-to-end shopping agent that connects next-generation consumers with brands in a more efficient, intent-driven ecosystem.