Karta AI | $3M (~₹28 Cr Seed)

Karta AI, a Bengaluru-based startup that builds AI customer-communication tools for banks, lenders and insurers, has raised $3 million (about ₹28 crore) in a Seed round co-led by PeerCapital and Cedar Hill Capital. Wyser VC, CDM Capital and Seedstars also participated.

The round

Karta AI raised $3 million (about ₹28 crore) in a Seed round led by PeerCapital and Cedar Hill Capital, Inc42 reports. Wyser VC, CDM Capital and Seedstars participated. The company plans to use the money over two years to expand go-to-market and distribution and to develop product in areas such as self-learning. Valuation and total funding raised were not disclosed.

What Karta AI does

Karta AI was founded in 2024 by Vijaypal Singh (CEO) and Abhishek Kushwaha, both former Razorpay executives, per Inc42. It builds an omnichannel customer communication platform covering voice, chat, email and WhatsApp, with voice as the main focus. The product targets complex inbound queries that need information from several enterprise systems; its context engine tracks multiple intents within a single conversation.

Voice supports about 25 Indian languages, and chat supports more than 200. The company started with chat automation and added voice in August 2025. It uses models from OpenAI, Google Gemini and open-source options such as Kimi and Gemma, and routes fraud, high-risk cases and processes without clear standard procedures to human agents.

The company makes these claims, which have not been independently verified:

• About 2 million customer conversations a month.
• 10 to 12 paying customers, including PhonePe, Pine Labs, Bajaj and Aavas.
• Its agent resolves around 70% of borrower queries end to end without human intervention, cutting cost per query by roughly 50%.
• 70% to 80% end-to-end automation in inbound proof-of-concept deployments, and it says it has won every such proof of concept so far.

The company plans to build reusable, industry-specific capabilities in financial services before expanding internationally.

The investors

Cedar Hill Capital is described in an investor directory (F4 Fund) as a Mumbai-based early-stage fund backing AI-first enterprise technology for financial services, which fits Karta AI's banking and insurance focus. PeerCapital co-led the round. Wyser VC, CDM Capital and Seedstars took part; available reports do not describe their theses, so none is attributed here.

Why it matters

Banks, lenders and insurers handle high volumes of customer queries, and Karta AI's focus is on the complex cases that draw on several systems. How far its approach holds depends on customers staying with the product beyond proof-of-concept stages, and the 10 to 12 paying customers cited so far are a small base. Related coverage: AI funding news.