Melius raises $25M after scrapping its initial product to focus on AI ad tools

Melius, an AI startup founded by former Ramp engineers, has raised $25 million in funding after pivoting from its original product. The company now focuses on generating ad campaigns, images, and videos and has surpassed $1 million in annualized revenue within two months of launching.

Tarun Mottlia

Editor, Lazyfounder

Published Oct 7, 20264 min read

Melius raises $25M after scrapping its initial product to focus on AI ad tools — Image: Image Credits:Melius via source

30 SEC SUMMARY

Melius, an AI-driven platform for ad campaigns, images, and videos, raised $25 million in funding.
The round includes a $20 million Series A led by CRV and a $5 million seed round led by General Catalyst.
Melius pivoted from its original product after scrapping its entire codebase.
The company has surpassed $1 million in annualized revenue within two months of coming out of stealth.
Co-founders previously worked as engineers at Ramp and compete with Higgsfield, Krea, and Flora AI.

Funding and Growth
Founders and Product Pivot
Competitive Landscape
What this means
Key takeaways
FAQ
Sources

KEY HIGHLIGHTS

Melius raised $25 million in total funding, including a $20 million Series A led by CRV and a $5 million seed round led by General Catalyst.
The company achieved over $1 million in annualized revenue within two months of coming out of stealth.
Melius pivoted from its original product, scrapping its entire codebase to focus on AI-driven ad creative tools.
Co-founders Joowon Kim, Young Kim, and Arnav Ramu previously worked as engineers at Ramp.
Melius competes with Higgsfield, Krea, and Flora AI in the AI-driven creative tools space.

Funding and Growth

Melius, an AI-driven platform for generating ad campaigns, images, and videos, has raised a total of $25 million in funding, according to TechCrunch. The funding includes a $20 million Series A round led by CRV and a $5 million seed round led by General Catalyst.

The company reported surpassing $1 million in annualized revenue within two months of coming out of stealth in July. This rapid growth follows a pivot from its original product, which the co-founders scrapped entirely, including the codebase.

Founders and Product Pivot

Melius was founded by Joowon Kim, Young Kim, and Arnav Ramu, all of whom previously worked as engineers at Ramp. Joowon Kim has described himself as a social media influencer with a long-standing passion for creating short videos, a background that may have influenced the company’s focus on visual content.

The founders initially pursued a different product direction but decided to pivot after concluding their original idea "didn’t have legs." The decision involved scrapping the existing codebase and rebuilding the platform from the ground up to focus on AI-driven creative tools for advertisers.

Competitive Landscape

Melius operates in a competitive space alongside startups like Higgsfield, Krea, and Flora AI. According to TechCrunch, Higgsfield was valued at $5.4 billion in August and has reportedly surpassed $700 million in annualized revenue, illustrating the scale of opportunity—and competition—in the AI-driven creative tools market.

What this means

Lazyfounder analysis — our interpretation, not reported fact.

Melius’s rapid revenue growth and significant funding round signal strong market demand for AI-driven creative tools, particularly in advertising. However, the pivot from its original product—and the decision to scrap its entire codebase—highlights the challenges startups face in finding product-market fit. With competitors like Higgsfield already commanding billion-dollar valuations, Melius will need to differentiate itself not just in technology but in execution and scalability. For founders, this story underscores the importance of agility and the willingness to abandon ideas that don’t gain traction, even after initial investment.

Key takeaways

Melius secured $25 million in funding, including a $20 million Series A and $5 million seed round.
The startup achieved over $1 million in annualized revenue within two months of launching.
Melius pivoted from its original product, scrapping its initial codebase to focus on AI-driven creative tools.
The company competes in a crowded space with Higgsfield, Krea, and Flora AI, with Higgsfield reporting a $5.4 billion valuation.

FAQ

What does Melius do?

Melius is an AI-driven platform that generates ad campaigns, images, and videos for marketers and advertisers.

Why did Melius pivot from its original product?

The co-founders decided to pivot after determining their initial product idea lacked viability. They scrapped the entire codebase and rebuilt the platform to focus on AI-driven creative tools.

Who are Melius’s main competitors?

Melius competes with companies like Higgsfield, Krea, and Flora AI, all of which offer AI-powered tools for creating visual and advertising content.

How much funding has Melius raised?

Melius has raised a total of $25 million, including a $20 million Series A led by CRV and a $5 million seed round led by General Catalyst.

Related on Lazyfounder

Sources

TechCrunch · 2026-10-06
Ex-Ramp engineers raise $20M for platform Melius after scrapping their first product

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