Coframe raises $25 million as Khosla backs AI-driven website customization

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Coframe raises $25M for AI sites

Highlights

Coframe raised a $25 million Series A co-led by Khosla Ventures and Hanabi Capital, bringing total funding to $35 million with undisclosed valuation.
Coframe's AI platform generated over $300 million in incremental revenue for clients and improved conversion rates by 158% at Dropbox, 410% at Replit, and 60% at Cash App.
The funding supports Coframe’s effort to create continuously adaptive web pages, challenging incumbents like Adobe and Salesforce in the marketing technology sector.

Funding backs push for dynamic web pages

As reported by Business Insider, Coframe has raised a $25 million Series A co-led by Khosla Ventures and Hanabi Capital, bringing its total funding to $35 million, although the valuation is not disclosed.

Vinod Khosla says AI now makes extreme customization possible at a scale that was previously too costly and too slow to achieve through manual coding. He argues that many online experiences have become less useful because websites often prioritize what companies want to sell rather than what is most relevant to each user.

Coframe founder Josh Payne says the company is building what it calls a "living internet," where pages continuously adapt to users instead of remaining fixed. Payne, who previously co-founded Tom Brady-backed startup Autograph, says the idea emerged from the labor-intensive work involved in improving consumer-facing websites before generative AI tools became widely available.

Marketing technology faces a new AI test

Coframe says its platform has generated more than $300 million in incremental revenue for clients including Dropbox, BCG, Block, Backcountry, and Sur La Table. The company also says conversion rates have increased 158% at Dropbox, 410% at Replit, and 60% at Cash App.

The bet comes in a marketing technology sector that Payne describes as dominated by large incumbents such as Adobe and Salesforce, alongside many vendors offering narrower tools for testing, targeting, and measurement. He is betting AI can revive investor interest in the category by making web experiences more adaptive and commercially effective.

In our earlier article on a KPMG U.S. CEO survey about AI agents, we noted that many large companies are already seeing measurable efficiency and growth gains, even if only a small share consider the technology transformational so far. The survey also highlighted that CEOs expect continued increases in hiring, retraining, and AI infrastructure spending as organizations modernize processes and data to make AI work reliably at scale.

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