Bengaluru-based Karta AI has raised $3 million in a funding round led by PeerCapital and Cedar Hill Capital, with participation from Wyser VC, CDM Capital and Seedstars. The startup will use the fresh capital to improve its voice AI platform, expand deployments across financial institutions and strengthen its engineering and go-to-market teams.
Founded in 2024 by Vijaypal Singh, co-founder and CEO, and Abhishek Kushwaha, co-founder and CTO, Karta AI develops AI-powered voice agents for banks, lenders, fintech companies and insurers. Its platform connects with enterprise systems to handle customer queries and complete service workflows, escalating cases to human agents when necessary.
Karta AI Handles 2 Million Customer Conversations a Month
The company says its platform handles around 2 million customer conversations every month across more than 25 languages. Its focus is on complex inbound calls, where customers may raise multiple issues during a single interaction.
At a home loan company, Karta AI says its voice agent resolves around 70% of borrower queries end to end, including requests for loan disbursal updates, account statements, foreclosure statements and property document releases. The company estimates that the cost per query is around 50% lower.
At a payments company, its retention agent has recorded 25% more conversions than human agents, according to the startup. These performance figures are company-reported and have not been independently verified.
Funding to Expand AI Automation in Financial Services
Karta AI plans to use the investment to improve its automation capabilities, support more financial institutions and develop reusable tools for the financial services sector. It also plans to expand its engineering and go-to-market teams, with international markets a longer-term opportunity.
PeerCapital Managing Partner Karthik Prabhakar said Karta AI’s ability to manage complex, multi-intent conversations addresses a gap in customer-service automation. Cedar Hill Capital Managing Partner Sahil Anand highlighted the challenge of inbound calls, where customer needs are not known in advance and AI agents must work across institutional systems.
Why Inbound Voice AI Matters
For financial institutions, customer service often involves more than answering a question. An agent may need to retrieve account information, check a transaction or loan status, initiate a workflow and handle follow-up requests within the same call.
Automating these interactions could reduce service costs and improve resolution times. However, financial services also require strong safeguards around sensitive data, accuracy and high-risk requests. Karta AI’s ability to automate complex tasks while handing unsuitable cases to human teams will be important as it scales.
The funding gives the startup additional capital to build and deploy its platform. Its next challenge will be to demonstrate that its reported efficiency gains can be sustained across more customers, workflows and languages.
