Bengaluru Startup Arrowhead Raises $3 Mn Seed Round to Scale its Voice AI Models
The startup focuses on replacing large human sales teams with AI-driven voice agents capable of conducting long and complex conversations.
Arrowhead, a voice AI startup building human-like sales agents for the financial services industry, has raised $3 million in a seed funding round led by Stellaris Venture Partners.
According to Arrowhead, the capital will be used to strengthen its AI models, scale its technology and sales teams, and improve conversion rates for financial services firms.
The startup focuses on replacing large human sales teams with AI-driven voice agents capable of conducting long and complex conversations.
“Indian enterprises have long relied on large human sales teams because labour was considered inexpensive, but this has led to significant inefficiencies, from training and attrition to mis-selling and inconsistent outcomes,” Devyani Gupta, co-founder and CEO of Arrowhead, said in a statement.
Arrowhead’s platform includes an orchestration layer that enables voice AI bots to handle conversations lasting up to 20 minutes, while maintaining compliance and natural dialogue.
“We’re building voice AI agents that can handle long, complex sales conversations while delivering meaningfully better conversion outcomes. What’s exciting is how quickly financial institutions are now moving from pilots to full-scale adoption,” Gupta added.
The company said its annual recurring revenue grew fivefold between August and October last year, with every proof-of-concept converting into a live deployment. Arrowhead claims its bots delivered 45% higher conversion rates than human agents in health insurance sales and helped boost renewal rates by 20% for another financial services client.
Operating across India and Southeast Asia, Arrowhead serves over 50 BFSI clients, including Bank of Baroda Cards, Aditya Birla Capital and Paytm. In the next 12 to 18 months, the startup plans to scale infrastructure, improve conversational models and build emotion-aware, omnichannel voice agents.
“Voice AI for the financial sector in India alone represents a $3 billion market, with less than $50 million penetrated so far, highlighting how early we still are in this transition,” said Vardhan Dharnidharka, principal at Stellaris Venture Partners.
The round also saw participation from angel investors, including CRED founder Kunal Shah, M2P founder Madhusudanan R, and several fintech executives who are also customers of the company.
