Enterprise AI startup RevRag AI has raised $2.5 million (about Rs 24 crore) in a seed funding round led by Accion Ventures, with participation from Cedar Hill Capital, Wyser and Venture Catalysts.
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The startup said it will use the fresh capital to accelerate product development, expand enterprise deployments and enter the US market.
The latest investment follows a $600,000 pre-seed funding round led by Powerhouse Ventures in August 2024, which also saw participation from angel investors, including CRED founder Kunal Shah.
What does RevRag AI do?
Founded by Ashutosh Prakash Singh, Neeraj Gupta and Pankaj Gupta, RevRag AI develops multilingual, autonomous AI agents designed to help banks, lenders, fintech and insurance companies manage customer onboarding, product sales and customer support.
The startup previously developed AI-powered sales automation tools for businesses before shifting its focus towards customer-facing processes in the banking, financial services and insurance (BFSI) sector in early 2025.
The shift was driven by challenges in digital customer onboarding, where repeated data entry, multiple verification steps and extensive documentation can delay transactions and lead customers to abandon applications.
RevRag AI aims to address these problems through AI agents that operate within financial institutions’ applications and act as virtual relationship managers.
The agents are designed to help customers understand financial products, complete onboarding requirements and access real-time assistance in multiple languages.
According to the startup, its technology can reduce customer drop-offs, particularly among users who struggle with financial terminology, English-language interfaces or complex digital processes.
RevRag AI also claims its platform can help financial institutions generate revenue while operating at up to 70% lower cost than traditional customer engagement channels.Â
“A good relationship manager knows you, tells you what to do next, and handles it for you,” said co-founder and CEO Ashutosh Singh.
It currently works with more than 45 financial institutions, including PhonePe, Razorpay, Bajaj Finance, Motilal Oswal, IIFL, Aditya Birla Capital, DCB Bank and Moneyview.
US expansion and technology development
RevRag AI is targeting the US financial services market, where it sees opportunities to provide AI-powered automation to businesses operating across insurance, lending and credit cards.
Alongside its international expansion, the startup plans to invest in developing and fine-tuning its own multimodal small language models (SLMs), which can process different types of information, including text and images.
The startup’s existing platform relies on third-party proprietary AI models, while its planned investments in SLMs are intended to bring more of the underlying technology in-house.
It also acquired GenStaq.ai, a company specialising in modular large language model operations (LLMOps) and workflow orchestration, in September 2025.
The acquisition was aimed at strengthening RevRag AI’s control over its technology infrastructure, including the systems used to develop, deploy and manage enterprise AI agents.
RevRag AI has previously outlined plans to introduce a no-code flow builder, which would allow financial institutions to configure automated workflows without extensive programming.
It has also identified AI-led cross-selling, real-time risk scoring and automated insurance claims processing as areas for future development.
The startup intends to remain focused on customer-facing automation within financial services rather than expanding into unrelated sectors.
RevRag AI aims to achieve $50 million in annual recurring revenue (ARR) by FY28, although the target reflects its growth plans rather than its current financial performance.
Growing adoption of AI in financial services
The funding comes as financial institutions increasingly explore AI to automate customer interactions, improve operational efficiency and simplify digital services.
Banks, insurers and fintech companies are deploying AI-powered tools across functions including customer onboarding, fraud detection, risk assessment and customer support.
According to media reports, the global AI in fintech market is estimated to reach $45.53 billion in 2026 and is projected to grow to $241.67 billion by 2034, representing a compound annual growth rate of 23.20% during the forecast period.
