Karta AI Funding: Raises $3 Million in Seed Round
- Karta AI has raised $3 million in seed funding, led by PeerCapital and Cedar Hill Capital.
- Karta plans to use the funding for product development, go-to-market expansion and engineering, while developing more self-learning and multilingual capabilities.
- According to the company, Karta handles around 2 million customer conversations every month across more than 25 languages.
Bengaluru-based AI startup Karta AI has raised $3 million in a seed funding round led by PeerCapital and Cedar Hill Capital to expand its AI-powered customer service platform for banks, lenders, fintech companies and insurers.
The round also saw participation from Wyser VC, CDM Capital and Seedstars. The company plans to use the funding to expand its go-to-market and distribution, strengthen product development and build capabilities around areas such as self-learning AI systems.
Founded in 2024 by Vijaypal Singh and Abhishek Kushwaha, Karta AI builds AI agents for customer operations, with a focus on inbound interactions that require access to multiple enterprise systems and workflows.
Karta AI Focuses on Complex Inbound Customer Queries
Karta AI’s platform is designed to handle conversations involving multiple customer intents rather than limiting an interaction to a single frequently asked question.
Its AI agents can connect with enterprise systems, retrieve relevant information and execute workflows during a conversation. The platform is primarily focused on L2 and L3 customer queries, which can require information to be pulled from multiple systems and several actions to be completed before an issue is resolved.
Karta’s context engine uses information from standard operating procedures, knowledge bases, previous customer conversations and enterprise APIs to maintain context during interactions. The startup says this allows its agents to handle follow-up requests without treating each query as a separate conversation.
According to the company, Karta handles around 2 million customer conversations every month across more than 25 languages. It currently has 10–12 paying customers, including PhonePe, Mindlabs, Bajaj and Aavas, according to recent reporting.
Karta also claims that its agents resolve around 70% of borrower queries end to end without human intervention. These include loan disbursal updates, account statements, foreclosure statements and property document release requests. The company has reported 70–80% end-to-end automation in its inbound proof-of-concept deployments.
Not every interaction is handled entirely by AI. Karta says cases involving fraud, high-risk situations or processes without clearly defined operating procedures can be routed to human agents, while customers can also request human assistance.
The reported resolution and automation figures are company-provided and have not been independently audited in the sources reviewed.
Funding to Expand Karta’s BFSI Deployments
The new capital will be used to expand Karta AI’s go-to-market and distribution efforts, strengthen product development and increase its engineering capabilities. The company also plans to develop more self-learning capabilities for its AI systems.
The startup plans to build reusable, industry-specific AI capabilities before exploring international markets. Its longer-term objective is to automate more complex customer-service and operational workflows rather than limiting AI agents to basic conversational support.
Karta AI is operating in a growing market for AI-powered customer operations, with other startups such as Desible.ai and Arrowhead also developing AI systems for financial-services workflows and customer interactions.