Bangalore-based voice AI startup Arrowhead recently announced it has successfully secured a $3 million seed round of funding, led by Stellaris Venture Partners, with participation from several well-known angel investors, including CRED founder Kunal Shah and M2P founder Madhusudhan R. Additionally, some fintech executives who are customers of Arrowhead also participated in the investment.

According to the press release, the funds will be used to enhance Arrowhead's AI models, expand its technology and sales teams, and improve conversion rates in the financial services sector. Arrowhead co-founder and CEO Deevani Gupta said, "Indian companies have long relied on large manual sales teams, leading to many inefficiencies such as training, employee turnover, incorrect sales, and inconsistent results."

Arrowhead's platform features a complete scheduling layer, enabling voice AI robots to engage in conversations lasting up to 20 minutes. Deevani added, "We are building voice AI agents capable of handling complex sales conversations and achieving more significant improvements in conversion results. It is exciting that financial institutions have quickly moved from pilot projects to full-scale adoption."

The platform aims to enable natural and compliant conversations while providing efficient responses at scale. From August to October last year, Arrowhead's annual recurring revenue grew fivefold, and it stated that every proof of concept project was successfully converted into actual deployment, with none lost.

Arrowhead deployed voice AI robots for a major financial institution, where the conversion rate for health insurance sales calls was 45% higher than that of human agents, replacing manual operations. Additionally, Arrowhead helped a financial services company successfully contact 100% of its customers for insurance renewals, increasing the renewal rate by 20%.

Arrowhead currently operates in India and Southeast Asia, serving over 50 customers in the banking, financial services, and insurance (BFSI) sector. The company collaborates with several key institutions, including Baroda Bank Credit, Aditya Birla Capital, and Paytm.

In the next 12 to 18 months, Arrowhead plans to enhance its BFSI dialogue model, strengthen its infrastructure to support tens of thousands of simultaneous calls, and develop emotionally aware voice agents, transitioning toward an omnichannel customer interaction platform across chat, phone, and messaging.

Vardan Dalalnada, head of Stellaris Venture Partners, stated in a statement, "The voice AI market in the Indian financial sector is worth $3 billion, and the current penetration is less than $50 million, indicating that we are still in the early stages of this transformation."

Key points:

🌟 Arrowhead raised $3 million in funding, which will be used to enhance AI models and sales teams.  

🤖 The platform supports conversations lasting up to 20 minutes, improving conversion rates in financial services.  

📈 Future plans include developing emotionally aware voice agents and expanding to an omnichannel customer interaction platform.