Bangalore-based voice AI startup Arrowhead has raised $3 million in a seed funding round to accelerate the development of its human-like voice automation platform for financial services. The round was led by Stellaris Venture Partners, with participation from prominent angel investors including CRED founder Kunal Shah, M2P founder Madhusudanan R, and several fintech executives who are also Arrowhead customers. The funding underscores growing investor confidence in voice AI as a scalable alternative to traditional sales and customer engagement models in India’s BFSI sector.
Funding and Investor Confidence
The latest investment brings together institutional backing and strategic angel participation from industry leaders who actively use Arrowhead’s technology. Stellaris Venture Partners led the round, highlighting the firm’s conviction in Arrowhead’s market opportunity and execution capabilities. According to the company, the mix of financial and customer-investors strengthens its position as it scales adoption across banks, NBFCs, and fintech firms.
Use of Capital and Strategic Focus
Arrowhead plans to deploy the fresh capital toward strengthening its core AI models, expanding its technology and go-to-market teams, and improving conversion outcomes for clients. The company aims to address inefficiencies long associated with large human sales teams, including inconsistent performance, high attrition, and mis-selling risks. Management believes voice AI can deliver more predictable and compliant customer interactions at scale.
Product Capabilities and Differentiation
At the core of Arrowhead’s platform is a proprietary orchestration layer that allows voice AI agents to conduct end-to-end conversations lasting up to 20 minutes. These agents are designed to manage complex sales discussions without customers realizing they are interacting with a bot. The system prioritizes natural dialogue, regulatory compliance, and consistent performance across high call volumes.
Traction and Revenue Growth
Arrowhead has reported rapid commercial traction, with annual recurring revenue growing fivefold between August and October last year. The company stated that every proof-of-concept engagement has successfully converted into a full deployment, with none lost to date. This conversion rate reflects strong demand from financial institutions moving quickly from pilots to production use cases.
Client Impact and Performance Metrics
In one deployment with a large financial institution, Arrowhead’s voice AI robots achieved conversion rates for health insurance sales that were 45% higher than those of human agents. In another case, the platform enabled a financial services company to reach 100% of its customers for insurance renewals, increasing renewal rates by 20%. These outcomes have allowed clients to replace or significantly reduce manual calling operations.
Market Opportunity and Expansion Plans
Arrowhead currently operates across India and Southeast Asia, serving more than 50 customers in the BFSI sector, including Bank of Baroda Cards, Aditya Birla Capital, and Paytm. Stellaris Venture Partners estimates the Indian voice AI market for financial services at $3 billion, with penetration still below $50 million. Over the next 12 to 18 months, Arrowhead plans to deepen BFSI-specific dialogue models, support tens of thousands of concurrent calls, and develop emotionally aware voice agents as it evolves into an omnichannel platform.
Arrowhead’s $3 million seed raise marks a significant milestone as voice AI adoption accelerates across India’s financial services industry. With strong early traction, measurable client impact, and backing from both investors and customers, the company is positioning itself at the forefront of AI-driven sales automation. As institutions increasingly seek scalable and compliant engagement tools, Arrowhead aims to play a central role in shaping the next phase of customer interaction.