RagaAI, an automated testing startup specializing in mitigating AI risks for enterprises, announced on Tuesday that it has successfully raised $4.7 million (approximately INR 39 crore) in a seed funding round led by pi Ventures. Global investors, including Anorak Ventures, TenOneTen Ventures, Arka Ventures, Mana Ventures, and Exfinity Venture Partners, also participated in the funding round. The company plans to utilize the fresh funds for research and development, as well as expanding its client base across the United States and Europe, according to Gaurav Agarwal, the founder of RagaAI.
Established by Agarwal in 2022, RagaAI claims to have developed a platform called RagaAI DNA, designed to assist AI-powered companies in testing automation use cases, identifying shortcomings, and providing instant diagnosis and fixes. The startup offers over 300 distinct tests to help users pinpoint issues to their root causes, addressing concerns such as data drift, edge case detection, poor data labeling quality, bias in the data, lack of model robustness, or adversarial attacks. RagaAI supports various data types, including LLMs, images/videos, 3D, audio, NLP, and structured data, effectively reducing risks by 90% and accelerating AI development by over three times.
Agarwal articulated the startup’s vision, stating, “Our vision is to liberate AI from the constraints of human interventions and foster continuous improvement. In the era where AI dominates, our mission at RagaAI is to tackle the paramount challenge of ensuring the quality and consistency of AI applications.” Emphasizing its focus on providing innovative testing solutions, the startup aims to unlock the full potential of the AI revolution, fostering a future where AI thrives with trust, reliability, and excellence.
RagaAI has ambitious plans for growth, intending to increase its revenue by 10 times and expand its employee count from 40 to 100 in the next two years. The funding arrives at a time when deep tech and AI-based startups are gaining considerable attention from tech investors. Earlier this month, Bengaluru-based Upekkha announced the first close of its AI-focused fund at $15 million, with a target of $40 million. According to Inc42’s Indian Tech Startup Funding Report 2023, deeptech startups received overall funding exceeding $496 million in the year, marking a significant increase from $397 million in 2022.
