Karta AI, an Indian AI startup focusing on automating complicated inbound customer calls for BFSI companies, has raised $3 million in seed funding led by PeerCapital and Cedar Hill Capital to enhance its product and market reach.
- Raised $3M seed round to expand go-to-market and product development
- Automates complex inbound BFSI queries across voice, chat, email, WhatsApp
- Achieves ~70% end-to-end automation, cutting query costs by 50%
What happened
Karta AI, founded in 2024 by former Razorpay executives Vijaypal Singh and Abhishek Kushwaha, has raised $3 million in a seed round led by PeerCapital and Cedar Hill Capital with participation from Wyser VC, CDM Capital, and Seedstars. The startup plans to invest the funds into expanding its go-to-market strategy and advancing product capabilities, particularly in emerging AI technologies such as self-learning.
The company initially focused on chat-based automation and broadened to voice in August 2025. Karta AI's platform supports omnichannel communications including voice, chat, email, and WhatsApp, with a particular focus on inbound voice interactions that require handling complex, multi-intent customer requests for BFSI clients.
Why it matters
Karta AI addresses a critical pain point in BFSI customer service by automating complex inbound queries that typically require coordination across multiple enterprise systems. Unlike routine FAQs, these interactions involve multi-intent conversations such as loan status checks combined with foreclosure documentation requests, which traditional automation struggles to handle efficiently.
The startup’s AI agents reportedly resolve about 70% of borrower queries end to end without human intervention, reducing the cost per query by nearly half. Since complex level 2 and level 3 queries contribute approximately 80% of the overall customer service costs, Karta AI’s focus on these interactions could significantly optimize operational expenses for BFSI institutions.
What to watch next
Karta AI’s next steps include scaling its distribution and enhancing its AI tech stack through self-learning capabilities and deeper enterprise system integration. Its proprietary context engine that manages multi-intent conversations will be key to expanding its automation impact across diverse BFSI workflows.
With 10 to 12 paying customers such as PhonePe, Mindlabs, Bajaj, and Aavas, the startup’s growth trajectory will depend on winning more contracts and increasing automation rates in live deployments. Observers should watch how well Karta AI maintains high automation accuracy without compromising customer experience, especially in sensitive financial service scenarios.