RevRag AI, an Indian artificial intelligence startup building virtual relationship managers for financial services companies, has raised $2.5 million (around Rs 24 crore) in a seed funding round led by Accion Ventures. 

Cedar Hill Capital, Wyser and Venture Catalysts also participated in the round. The company plans to use the funds to develop its technology, expand enterprise deployments and enter the US market.

Founded by Ashutosh Prakash Singh, Neeraj Gupta and Pankaj Gupta, RevRag AI develops multilingual AI agents that operate within the applications of banks, lenders, fintech companies and insurance providers. 

These agents act as virtual relationship managers, helping customers understand financial products, complete onboarding procedures and access customer support.

The startup aims to address common problems in digital financial services, including repetitive data entry, multiple verification steps and complicated documentation. These challenges can cause customers to abandon applications before completing the process.

According to the company, its technology can reduce customer drop-offs and help financial institutions improve customer engagement. RevRag AI also claims that its platform can deliver customer engagement at up to 70% lower cost than traditional channels.

RevRag AI currently works with more than 45 financial institutions, including PhonePe, Razorpay, Bajaj Finance, Motilal Oswal, IIFL and Aditya Birla Capital.

With the latest funding, the company plans to enter the US financial services market, targeting businesses operating in lending, insurance and credit cards. It also intends to develop and fine-tune its own multimodal small language models (SLMs), which can process different types of information, including text and images.

The startup currently relies on third-party proprietary AI models. Developing its own models could give it greater control over its technology infrastructure and product development. In September 2025, the company also acquired GenStaq.ai, which specialises in large language model operations and workflow automation.

The funding comes as financial institutions explore AI to automate customer interactions and improve operational efficiency. RevRag AI aims to expand its presence in this market while strengthening its technology capabilities.

The company has set a target of reaching $50 million in annual recurring revenue by FY28. However, this remains a future goal rather than its current financial performance. 

Its progress will depend on customer adoption, successful US expansion and its ability to convert AI-driven automation into sustainable business growth.

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