Karta AI Secures $3M Seed Funding to Automate Complex Banking Calls with 70% Resolution Rate

Former Razorpay Executives Secure Funding for AI Customer Communication Platform

Karta AI has closed a $3 million seed funding round led by PeerCapital and Cedar Hill Capital, with participation from Wyser VC, CDM Capital and Seedstars1

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. Founded in 2024 by former Razorpay executives Vijaypal Singh and Abhishek Kushwaha, the startup will deploy the capital to expand its go-to-market strategy and distribution over the next two years while investing in product development and emerging AI capabilities such as self-learning2

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Targeting Complex Inbound Calls in the BFSI Sector

Karta AI builds an AI-powered customer communication platform specifically designed for banks, lenders, fintech companies and insurers1

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. The platform focuses on resolving complex inbound calls that require multiple actions across financial institutions' systems, including loan servicing requests, failed payments, blocked cards and insurance claims1

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. Singh and Kushwaha began working on Karta AI after leaving Razorpay, where they had developed internal AI automation systems. The startup initially focused on chat-based automation before expanding into voice in August 20252

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Achieving 70% Automation Rate Across 2 Million Monthly Conversations

The platform currently handles around 2 million customer conversations per month across more than 25 languages1

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. At an unnamed home loan company, Karta AI's servicing agent resolves around 70% of borrower queries end to end without human intervention, including requests for loan disbursal updates, account statements, foreclosure statements and the release of property documents1

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. This automation has delivered an approximately 50% reduction in cost per query1

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. The startup claims 10-12 paying customers, including PhonePe, Mindlabs, Bajaj and Aavas2

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Predictive Context Engine Powers Multi-Intent Conversation Handling

Karta AI's proprietary predictive context engine differentiates its approach from conventional voice AI systems1

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. The engine draws on previous interactions, SOPs, knowledge bases and enterprise APIs to help agents handle subsequent requests and retain context across conversations1

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. This capability allows the system to manage multi-intent conversation scenarios where borrowers might check loan disbursal status and request a foreclosure statement in the same call2

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. The platform integrates with enterprise systems to execute both customer-facing and back-office workflows, using models from OpenAI and Google's Gemini family alongside open-source models such as Kimi and Gemma2

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Focusing on High-Cost L2 and L3 Queries

Karta AI targets level 2 and level 3 queries, which require AI agents to interpret multiple customer intents, retrieve information from different systems and execute workflows2

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. According to Vijaypal Singh, L1 queries account for 30-40% of customer service volumes but only around 10% of costs, while L2 and L3 queries together account for around 80% of customer service costs2

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. Singh said Karta AI has achieved 70-80% end-to-end automation in its inbound proof-of-concept deployments and has won all such PoCs so far2

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. The platform does not automate every interaction—queries involving fraud or other high-risk matters, along with processes lacking clearly defined SOPs, are routed to human agents2

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Building Compliance Guardrails for Financial Services

Given its focus on the BFSI sector, Karta AI has built compliance measures and guardrails into the platform2

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. Singh noted that agents are tested by Karta AI's team, customers and AI-based testing systems before deployment2

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. The voice platform supports around 10-12 Indian languages and is designed to accommodate Hindi-English code-switching, regional accents and dialects, while its chat offering supports more than 200 languages2

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. Singh stated that the funding will enable Karta AI to expand to more institutions, with a long-term vision of providing an intelligent assistant for every customer and an AI workforce to manage every workflow1

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