Arrowhead has raised $3 Mn (Rs 27 crore) in its seed funding round led by early-stage venture capital firm Stellaris Venture Partners. The round also saw participation from Kunal Shah, Founder, CRED, and Madhusudanan R, Co-Founder, M2P Fintech, along with senior executives from FinTech companies such as Turtlemint and Kissht.
This marks Arrowhead’s first institutional funding round. The company had earlier raised a pre-seed round of around $320,000. While the startup has both India and US entities, most of its operations are based in India.
Founded in 2022 by Devyani Gupta and Vengadanathan Srinivasan, Arrowhead builds and deploys voice AI agents designed to support sales and service functions for banks, NBFCs and FinTech firms. These agents manage end-to-end customer calls, often running up to 20 minutes, without customers realising they are interacting with an AI system.
The fresh capital will primarily be used for hiring and strengthening the company’s technology stack. Arrowhead is expanding across engineering, data science, customer success and new customer acquisition roles. It is also working on building deeper technology differentiation by fine-tuning its AI models in-house and extending its product beyond basic voice automation.
Arrowhead currently serves three core BFSI segments, lending, insurance and securities. In lending, its bots handle loan sales and collections. For insurance, they manage health, life and motor insurance sales and renewals. In the securities segment, the company supports use cases such as mutual fund and fixed deposit sales.
The startup claims its voice AI agents deliver up to 45 per cent higher conversion rates compared to human agents. These bots handle complex calls that require explaining policy details, coverage and exclusions while referring to lengthy policy documents, all without breaking conversation flow or compliance. In some cases, this has enabled clients to replace human agents entirely.
Arrowhead’s platform supports multiple Indian languages including Hindi, English, Tamil, Telugu, Malayalam, Kannada and Bengali, with the ability to switch languages mid-call. This feature helps reduce customer drop-offs when communication barriers arise.
On the business front, Arrowhead says its revenue has grown four times over the past few months, driven by an increase in live customer contracts. The company currently works with more than 50 BFSI clients, including Bank of Baroda Cards, Aditya Birla Capital, Paytm, Turtlemint, Kissht and InsuranceDekho.
Beyond India, Arrowhead has operations in Southeast Asia, with active deployments in Malaysia, and plans to expand further across Southeast Asia and the Middle East over the next year.
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