Dippy AI

How Two Founders Built Dippy AI to 600K Active Users

December 12th, 2024

Founded By

Akshat Jagga

Starting Costs

Founders

Profitable

Yes

Year Started

2023

Customer

B2B & B2C

Founded By
Akshat Jagga: Starting Costs
$2

Founders
2: Profitable
Yes

Year Started
2023: Customer
B2B & B2C

Who is Akshat Jagga?

Dippy AI was co-founded by Akshat Jagga and Angad Arneja, who both met at the University of Toronto. They were previously involved in the development of the successful lip-syncing app Wombo, which achieved significant scale and funding before they shifted their focus to AI-driven companion apps.

What problem does Dippy AI solve?

Dippy AI offers virtual companions for people feeling lonely or isolated, providing engaging and personalized interactions without judgment, effectively filling emotional and social gaps for users.

Founder-Market Fit

Skills

What skills did Akshat Jagga have that led to their success?

No Code

How did Akshat come up with the idea for Dippy AI?

Akshat Jagga and Angad Arneja started their journey with Dippy AI by initially focusing on building a productivity tool, but soon observed a greater need in the realm of AI companionship. This shift was inspired by both personal insights and external research highlighting the widespread issue of loneliness. They noticed that people were often searching for non-judgmental spaces to express themselves, and AI companions could provide that outlet.

In refining their idea, they conducted research on user behavior and existing gaps in AI interaction, discovering that most people desired companions who were context-aware and uncensored. They validated their assumptions through early user engagement and feedback, learning that users sought meaningful interactions forgetful of AI's limitations. This feedback helped them pivot from their initial productivity-based model to a more enriching, conversational experience.

A significant early challenge was developing a language model that combined empathy and roleplay without imposing censorship, given the tools available at that time weren’t meeting these needs. Through exploration of innovative technologies like BitTensor for model training, they overcame this hurdle in a cost-effective way. The key lesson from their journey was the importance of being adaptable and responsive to real-world needs, leveraging technological community resources to fine-tune their product vision.

How did Akshat Jagga build the initial version of Dippy AI?

Dippy AI was developed as a mobile-first AI app using a custom large language model (LLM) that was fine-tuned specifically for empathy and roleplay. The development leveraged BitTensor, an open-source network that allowed the team to build sophisticated AI models without the need for extensive capital usually required for such endeavors. The app was initially powered by two models, including a mini model fine-tuned on BitTensor, which processed over 500,000 requests per second. The development of Dippy AI was a challenging process; the co-founders pivoted from their initial plan of creating a productivity app after realizing the potential use of AI in fulfilling companionship needs. The building process required deep insight into the uncensored LLM requirements for effective roleplay, a challenge they overcame by selecting open-source tools that allowed for flexibility and innovation.

What were the initial startup costs for Dippy AI?

Funding: Dippy AI raised $2.1 million in pre-seed funding led by Drive Capital, with participation from Carya VC, Cory Levy, Hustle Fund, and Pareto20 (Edward Lando).

What was the growth strategy for Dippy AI and how did they scale?

Dippy AI's primary growth strategy has been through organic means, particularly by leveraging social media platforms like TikTok. The company focused on creating a plethora of engaging content around their app, highlighting its features and unique aspects. This approach not only attracted initial users but also encouraged those users to generate their own content, further promoting Dippy AI organically. The strategy capitalizes on the viral nature of social media, allowing them to build awareness without significant ad spend.

embed:tiktok

Why it worked: The decision to use TikTok was strategic given its vast user base and potential for videos to go viral quickly. The team's concentrated efforts to flood the platform with content ensured high visibility, while the compelling nature of Dippy's offering encouraged current users to produce their own videos about their experiences, driving word-of-mouth growth.

Product Superiority and Word-of-Mouth

A significant driver of Dippy AI's growth has been its product superiority in a niche market. By offering an uncensored, mobile-first AI companion with features like persistent memory, Dippy AI positioned itself as a superior alternative to its competitors. This has not only provided an exceptional user experience but also led to word-of-mouth recommendations, as satisfied users naturally share the app with others.

Why it worked: This approach taps into the power of personal recommendations, which are often more trusted than traditional advertisements. As users experience unique and fulfilling interactions with their AI companions, they are more likely to suggest it to friends facing similar needs for companionship, thereby expanding Dippy AI's user base.

TikTok Content Strategy

Dippy AI's early marketing efforts focused heavily on TikTok, where they engaged a marketing team to produce and distribute a substantial volume of videos. The content was creative and tailored to showcase the app's unique features and use cases. This consistent and engaging output helped capture the interest of TikTok's younger demographic, who are typically more open to trying new apps.

Why it worked: TikTok's algorithm favors frequent content, particularly videos that engage users through dynamic storytelling and visually appealing elements. By pushing a high volume of content, Dippy AI increased the likelihood of their videos being featured on the "For You" page, leading to increased app downloads and user engagement.

User-Created Content

As users began interacting meaningfully with Dippy AI, they started creating their own content, sharing their unique experiences with the app across various social platforms. This user-generated content (UGC) has been a crucial aspect of Dippy's ongoing organic growth.

Why it worked: UGC is a powerful marketing tool because it provides authentic reviews and real-life applications of the product from the perspective of everyday users. This authenticity helps build trust with potential users who may be skeptical of promotional content directly from a company.

What's the pricing strategy for Dippy AI?

Dippy AI offers a free tier with ads and a subscription model, making revenue through ad displays every 10–15 messages; roughly 60% comes from subscriptions.

What were the biggest lessons learned from building Dippy AI?

Embrace the Pivot: Initially aiming to build a productivity tool, Dippy AI's founders discovered an intriguing opportunity in AI companion space and pivoted swiftly. Flexibility in direction can often lead to more lucrative opportunities.
Leverage Organic Growth: Rather than relying heavily on paid advertisements, Dippy AI focused on organic marketing strategies, especially through platforms like TikTok. This approach resulted in a significant user base without high acquisition costs.
Prioritize User Experience: Dippy's success is partly due to its commitment to understanding user needs deeply, like allowing uncensored and empathetic interactions, which provided a more genuine user experience compared to competitors.
Iterate Quickly, Adapt Constantly: The company's journey reflects the importance of quickly iterating on feedback and adapting to user demands, leading to enhancements like memory retention in AI interactions and improvements based on real user inputs.
Stay Resilient Amidst Fluctuations: With fluctuating daily active users and other dynamic metrics, the founders learned to emotionally distance themselves from these fluctuations, focusing instead on long-term growth and sustainability.

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More about Dippy AI:

Who is the owner of Dippy AI?

Akshat Jagga is the founder of Dippy AI.

When did Akshat Jagga start Dippy AI?