Voice AI for banking is one of the hottest corners of startup funding in India right now — and Karta AI just joined the wave, raising $3 million (around ₹28 crore) in a seed funding round led by PeerCapital and Cedar Hill Capital.
The round also saw participation from Wyser VC, CDM Capital and Seedstars, Inc42 reported on 22 October 2026.
Founded in 2024 by former Razorpay executives Vijaypal Singh and Abhishek Kushwaha, Karta AI offers an omnichannel customer-communication platform spanning voice, chat, email and WhatsApp — with a sharp focus on complex inbound calls for banking, financial services and insurance (BFSI) players.
The startup targets the hard stuff: level 2 and level 3 queries that span multiple enterprise systems rather than routine FAQs — loan disbursal updates, statements of account, foreclosure statements, release of property documents. Karta claims its agents resolve around 70% of borrower queries end to end without human intervention, cutting the cost per query by roughly 50%.
Traction is already visible: the company says it handles about 2 million customer conversations a month across more than 25 languages, with 10-12 paying customers including PhonePe, Pine Labs, Bajaj and Aavas. High-risk cases such as fraud are routed to human agents.
Co-founder and CEO Vijaypal Singh told Inc42 the capital will go toward expanding go-to-market and distribution over the next two years, plus product development around emerging capabilities such as self-learning AI. The raise lands amid a voice-AI funding surge in India estimated at $329 million through August 2026, up from just $12.9 million a year earlier.
Why it matters for founders
Karta AI proves investors will fund a crowded AI space when the workflow is painful enough: BFSI firms spend most of their servicing costs on complex inbound queries. Pick the expensive, regulated workflow — not the generic chatbot.