Karta AI, a Bengaluru startup that builds voice agents for banks, lenders and insurers, has raised $3 million in a seed funding round led by PeerCapital and Cedar Hill Capital. The round works out to roughly Rs 28 crore, and Wyser VC, CDM Capital and Seedstars also participated, the company said on 22 October.
Karta AI sells software that answers inbound calls for financial institutions and finishes the follow up work inside their systems, from checking a loan disbursal to issuing a foreclosure statement. The company did not disclose its valuation.
The Funding Round And Its Investors
PeerCapital and Cedar Hill co-led, with Wyser VC, CDM Capital and Seedstars participating. Karta AI did not say how the cheque splits between the two leads. Entrackr, Indian Startup News and Analytics India Magazine reported the same figure.
The bet is on a narrow slice of the market: voice automation sold to regulated financial institutions, not consumer apps.
What Karta AI Actually Handles
It is omnichannel across voice, chat, email and WhatsApp, though voice is the core. Its target is not the simple FAQ call a scripted bot can close with one database lookup. Karta AI goes after level 2 and level 3 queries, where a customer raises more than one request in a single conversation and each one needs data from a different system.
A borrower may ask about a loan disbursal and, in the same call, request a foreclosure statement. The agent has to recognise both intents, pull the records and start both processes without passing the customer to a human.
Read more: Enterprise AI Startup AuxoAI Raises $20.7 Mn Series A Led By NTTVC, another recent round in Indian enterprise AI, where investors are backing startups that sell automation into large companies.
The company says it handles about 2 million customer conversations a month in more than 25 languages, including Hindi and English mixed in the same sentence. It lists 10 to 12 paying customers, among them PhonePe, Pine Labs, Bajaj and Aavas, mostly in servicing at lenders and insurers.
Where The Money Goes
Karta AI said the capital will deepen automation and multilingual support, expand deployments with financial institutions, and add engineering, sales and marketing staff. Vijaypal Singh, co-founder and chief executive, said the near term plan is distribution over the next two years.
Product work is the second bucket, so a workflow built for one lender can be reused at another with less manual work.
The Cost Argument, And The Claims To Check
The case rests on where service budgets go. Singh said level 1 queries are 30% to 40% of call volumes but only about 10% of costs, while level 2 and 3 queries account for around 80% of service spending. The expensive ones, involving several systems and no fixed script, are still answered by people.
At an unnamed home loan company, Karta AI says its agent resolves around 70% of borrower queries without human help and cuts cost per query by roughly half. Those numbers are the company’s own and have not been independently audited. Fraud and other high risk calls, or processes without a clear standard operating procedure, go to human agents, and customers can ask for a person at any point.
Founders And The Product Build
Karta AI was founded in 2024 by Singh and Abhishek Kushwaha, both former Razorpay executives who worked on internal AI automation there. It began with chat automation and moved into voice in August 2025.
Its predictive context engine draws on standard operating procedures, knowledge bases, past conversations and enterprise system data. The stack uses OpenAI and Google Gemini models plus open source ones such as Kimi and Gemma.
What Happens Next
The segment is crowded. Desible.ai recently raised Rs 32 crore led by Prime Venture Partners, Navana.ai raised Rs 40 crore in a Series A led by upGrad co-founder Ronnie Screwvala in September, and Rezolv raised $12.5 million led by Norwest in August. Arrowhead and Gnani.ai chase the same buyers.
Paying customers moving well past 12, the resolution rate holding in live production, and audited guardrails will decide whether this round becomes a Series A. It says it is focused on Indian financial services before looking overseas.
