Bengaluru-based conversational AI startup Hunar.AI has raised Rs 39.3 crore in a Series A funding round led by Blume Ventures, as it looks to expand its technology for hiring and managing frontline workers.
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The round also saw participation from Seedstars, Hyderabad Angels Fund, AVNM Ventures and PhysicsWallah co-founders Alakh Pandey and Prateek Maheshwari, according to reports citing regulatory filings.
Blume Ventures invested Rs 29 crore, while Seedstars and Hyderabad Angels Fund contributed Rs 3.31 crore and Rs 3 crore respectively.
The startup plans to use the funding to strengthen its AI infrastructure, develop its products and expand its operations.
Founded by Krishna Khandelwal and Shantanu Bhattacharyya, Hunar.AI develops conversational AI agents to automate recruitment, onboarding, training and workforce engagement.
Its platform is designed for businesses employing large numbers of frontline workers across different locations, particularly in sectors such as quick commerce, logistics, retail, mobility and financial services.
The technology helps automate tasks including candidate screening, interview scheduling and follow-ups, while supporting communication in regional languages.
Hunar.AI said its platform enables companies to manage these interactions at scale without relying entirely on manual recruitment processes. Its customers include companies such as Croma and Tata 1mg.
Krishna Khandelwal, co-founder and CEO of Hunar.AI, described frontline workforce management as an underserved area of enterprise AI.
“Frontline workforce management is one of the largest yet most underserved opportunities in enterprise AI,” he said.
He added that addressing the sector’s challenges required specialised technology capable of understanding industry workflows, supporting multiple languages and performing tasks reliably at scale.
The investment comes as India’s expanding gig economy creates opportunities for businesses developing workforce management technology.
According to a 2022 report by government think tank NITI Aayog, India’s gig workforce was estimated at 7.7 million in 2020-21 and is projected to reach 23.5 million by 2029-30.
Businesses employing workers across multiple cities face challenges in coordinating recruitment, onboarding and communication, particularly when operating across regions with different languages.
Hunar.AI is seeking to address these requirements through AI agents designed around specific enterprise workflows rather than general-purpose chatbots.
Arpit Agarwal, partner at Blume Ventures, said in the supplied statement that India’s evolving commerce and logistics sectors were creating increasingly complex frontline operations.
He added that Hunar.AI’s focus on business outcomes could help it develop technology with the potential to expand beyond India.
