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Agentic AI startup RevRag.AI has raised $2.5 Mn (about ₹24 Cr) in a seed funding round led by Accion Ventures to expedite product development and expand to the US market. Cedar Hill Capital, Wyser and Venture Catalysts have also backed the startup. “From the perspective of financial services, the US has a vast number of companies from insurance to credit cards to loans. There is huge penetration there and a large market. And we see that there’s not much competition yet in the category we’re building in,” cofounder and CEO Ashutosh Singh told Inc42 in an interaction. While expanding to the US market appears to be on the top of the list, the startup is also looking to invest further in fine-tuning its own multimodal small language models (SLMs) to bring its tech layers in-house. Important to highlight that all of its platform is built on third-party proprietary models. Singh, with schoolmates Neeraj Gupta and Pankaj Gupta, had founded Revrag in 2023 initially modelled as a savings-oriented fintech platform. The idea of pivoting to a SaaS platform came when the trio realised that, while fintech users have slick interfaces and fast transactions at their disposal, onboarding customers continues to be bogged down by repetitive data entry, multiple verifications and cumbersome documentation. Pivoting early in 2025, RevRag.AI now aims to bridge this gap by streamlining onboarding and sales for banks and fintechs. For this, it offers autonomous AI agents that are capable enough to act as virtual relationship managers embedded within the financial institutions app. Beyond onboarding, the AI agents also automate customer product sales, support functions as well as provide real-time, multilingual assistance. This helps minimise conversion drop-offs, particularly when it comes to users from underserved backgrounds who have limited trust in digital systems and need assistance navigating financial terminology or English interfaces. As per Singh, RevRag’s offerings can save up to 70% of costs when compared to traditional channels while simultaneously helping in revenue generation. Thus, the startup will remain sharply focused on this problem statement rather than expanding into additional use cases. Earlier in 2025, the startup had told Inc42 that it was mulling to launch a no-code flow builder and expand its presence in Indian and American BFSI markets. The startup has shared aspirations to touch an annual recurring revenue of $50 Mn by FY28. It has lined up innovations like AI-led cross-selling, real-time risk scoring, and automated claims handling. As of now, it serves over 45 customers across India including the likes of PhonePe, Razorpay, Bajaj Finance, Motilal Oswal, and IIFL. It earlier raised $1 Mn from Powerhouse Ventures and various angel investors including WhatsApp head Kunal Shah. The fresh round comes at a time when the use of AI in automating fintech business functions is picking up. The global AI in fintech market is pegged to be valued at $45.53 Bn in 2026 and is projected to cross $241 Bn by 2034, growing at a compound annual growth rate (CAGR) of 23.20%.
document fetched 2026-10-15 03:00 · canonical https://inc42.com/buzz/fintech-saas-startup-revrag-ai-nets-2-5-mn-to-build-ai-relationship-managers-for-lenders-and-insurers