Klaviyo Absorbs Agency, Winds Down Standalone Product, and Hands Composer and Customer Agent to a New CPO

Agency's AI customer-success service is scheduled to shut down August 31 as Klaviyo folds the 25-person team into a two-agent roadmap aimed at more than 205,000 consumer brands.

Agency, the AI customer-success startup Elias Torres founded in 2023, shuts down its standalone service today, closing a chapter that began less than three years ago with roughly $32 million from Sequoia, Menlo Ventures, and Felicis. The 25-person team, along with Torres, moves inside Klaviyo, where Torres becomes chief product officer once the deal closes in Q3. The wind-down notice on Agency’s site, signed by Torres, co-founder Luke, and the team, formalizes what Klaviyo announced August 5: an acqui-hire that consolidates two AI agents under one product leader with an explicit small-business mandate.

The strategic logic is legible. Klaviyo already runs Composer, its prompt-to-campaign marketing agent, alongside Customer Agent, its consumer-facing service agent. Torres arrives to unify them into a single flywheel where service interactions enrich marketing data and campaigns inform service personalization. The raw material is unusually deep for a company this size: more than 9 billion consumer profiles, over 250 billion data points ingested per quarter, and more than 350 integrations feeding Mattel, TaylorMade, Glossier, Liquid Death, and Daily Harvest.

“Elias and I have always believed every customer should be treated like they’re the only one. Agents give us a powerful new way to deliver on that belief,” said co-founder and co-CEO Andrew Bialecki. Torres framed his own move in complementary terms: “At Agency, we built agents that proactively surface what customers need before they ask. But that’s only half the picture. By joining Klaviyo, I get the other half, an understanding of consumer behavior that nobody else has, and the ability to scale faster.”

The reunion has lore. Torres hired Bialecki as one of Performable’s first engineers in 2010; HubSpot bought Performable in 2011; Bialecki brought Torres into Klaviyo’s 2015 seed round as an angel while Torres was building Drift, which Vista Equity acquired for $1.2 billion in 2021 after his eight-year run as CTO.

Klaviyo, which went public at a $9.2 billion valuation in September 2023, posted $370.6 million in Q2 revenue, up 26% year over year, and raised its full-year forecast to $1.526–1.534 billion. High-value customers above $50,000 in ARR reached 4,477, growing 36%. Against specialist agent rivals like Decagon and Sierra, the pitch is distribution: 205,000 paying customers already inside the data layer. Bialecki wants to “bring that to 200,000 businesses — and hopefully to millions more over the next couple of years.” The bet is that a unified agent surface sitting on top of proprietary consumer behavior beats a better standalone agent sitting on top of nothing.

Klaviyo Absorbs Agency, Winds Down Standalone Product, and Hands Composer and Customer Agent to a New CPO

Sources