Karta AI Raises $3 Million in Seed Funding to Automate Complex Banking Calls

Karta AI has raised $3 million in a seed funding round led by PeerCapital and Cedar Hill Capital, with participation from Wyser VC, CDM Capital and Seedstars. The funding will support product development, distribution and expansion of the startup's artificial intelligence (AI) agents for financial services, according to the company.

“Inbound is where financial institutions carry the most cost and where customers feel the most friction. We built Karta AI to resolve the hard calls, the ones that need several systems and more than one answer, and to bring in a human only when it matters,” said Vijaypal Singh, Co-Founder and CEO of Karta AI.

Founded in 2024 by former Razorpay executives Singh and Abhishek Kushwaha, Karta AI builds an AI-powered customer communication platform for banks, lenders, fintech companies and insurers. The company said it handles around 2 million customer conversations a month across more than 25 languages.

Singh noted that customers see measurable returns through lower cost-to-serve and higher conversions. He added that the funding will let Karta AI expand to more institutions, with a long-term vision of providing an intelligent assistant for every customer and an AI workforce to manage every workflow.

Karta AI focuses on complex inbound calls that require multiple actions across a financial institution's systems. These include loan servicing requests, failed payments, blocked cards and insurance claims.

Its agents are designed to identify multiple customer requests in a single conversation, retrieve relevant information and execute workflows, escalating cases to human employees when necessary, the company said. 

At an unnamed home loan company, Karta AI said its servicing agent resolves around 70% of borrower queries end to end without human intervention. These include requests for loan disbursal updates, account statements, foreclosure statements and the release of property documents.

The company reported an approximately 50% reduction in cost per query. Karta AI said the remaining cases are escalated to human specialists, with the conversation context attached.

The platform uses what Karta AI calls a predictive context engine, which draws on previous interactions to help its agents handle subsequent requests. The company says the system helps agents retain context across conversations and coordinate tasks across enterprise software.