Karta AI raises $3 million seed funding led by PeerCapital and Cedar Hill

Bengaluru-based artificial intelligence startup Karta AI has raised $3 million in a seed funding round led by PeerCapital and Cedar Hill Capital, as India's enterprise technology ecosystem continues to deliver world-class automation for the financial sector.

Wyser VC, CDM Capital, and Seedstars also joined the round. Karta AI said the fresh capital will be used to enhance its multilingual voice capabilities, expand deployments across financial institutions, and scale its engineering and sales teams.

Founded in 2024 by Vijaypal Singh and Abhishek Kushwaha, Karta AI builds autonomous voice agents designed for inbound customer servicing across banking, financial services, and insurance. The platform integrates with enterprise backend systems to resolve queries and execute operational workflows without human assistance, escalating calls only when required.

India's expanding digital banking and payments network has driven high call volumes for financial institutions, creating strong demand for intelligent automation. Karta AI currently serves more than 10 paying enterprise clients, including PhonePe, Pine Labs, and Aavas, handling approximately 2 million customer conversations every month across more than 25 languages.

Automated query resolution in banking

Unlike traditional interactive voice response systems that handle single, routine requests, Karta AI uses what it terms a predictive context engine. The engine draws on previous human and AI interactions, internal system records, and standard operating procedures to manage multi-intent conversations.

The company stated that its inbound servicing agents now achieve a 70 per cent end-to-end resolution rate for borrower queries, managing tasks such as tracking disbursal status, sending account and foreclosure statements, and issuing property document releases.

"Financial services is a natural starting point because customer communication is frequent, operational processes are complex, and many interactions require action beyond the initial conversation," co-founder Vijaypal Singh said. He noted that complicated cases previously required manual intervention because human agents had to retrieve data from multiple systems and follow multi-step procedures.

Sahil Anand, managing partner at Cedar Hill Capital, pointed out that inbound calls present a unique technical challenge compared with outbound telemarketing. Inbound callers often present unpredictable, multi-part issues that require the agent to interpret context and take real-time action across distinct enterprise tools.

Voice AI funding activity in India

The investment in Karta AI aligns with growing venture capital interest in India's agentic voice AI sector, where homegrown firms are creating automated systems tailored to regional languages and enterprise requirements.

Over the next 12 to 18 months, Karta AI plans to deepen its coverage within Indian financial services before taking its specialized domain capabilities to international markets.