Funding Alert

AI Startup RapidCanvas Secures $16M in Series A Funding Led by Peak XV Partners

• ByStartupStory     |    December 13, 2024

RapidCanvas, a US-based AI agent startup, has raised $16 million in a Series A funding round, spearheaded by Peak XV Partners. The round also saw participation from Titanium Ventures and existing investors Accel and Valley Capital Partners.

The startup specializes in AI agents powered by large language models (LLMs), claiming they can automate up to 75% of complex tasks traditionally handled by data scientists and engineers. These AI agents process vast amounts of data, identify patterns, and make decisions, mimicking various human capabilities.

RapidCanvas operates on a service-as-a-software (SaaS) model, enabling enterprises to adopt customized AI solutions without the need for extensive technical expertise. The combination of AI agents and expert guidance ensures businesses can implement efficient AI transformations.

“This funding round will accelerate the startup’s journey of making trusted, efficient AI transformation accessible to more enterprises,” said Co-founder and CEO Rahul Pangam. RapidCanvas was founded by Pangam and Uttam Phalnikar, the duo behind Simility, an AI-powered risk management platform that was acquired by PayPal and integrated into its global fraud detection operations.

The RapidCanvas platform employs a hybrid model where AI agents handle 70% of coding tasks faster and more cost-effectively, while human experts tackle the remaining 30%, focusing on system design, hypothesis testing, and creative problem-solving. The startup claims this approach significantly reduces the need for human resources, requiring just one or two expert engineers instead of the usual team of ten.

“Our context-aware AI agents automate critical tasks like data preparation, transformation, and modelling, allowing business users to create tailored AI solutions using simple natural language prompts. With our expert-in-the-loop approach, we ensure human oversight at key decision points, validating outcomes and delivering real-world impact,” said Pangam.

He emphasized the efficiency of this approach, adding, “This approach enables businesses to achieve results in days or weeks, rather than months, at a fraction of the cost of traditional methods.”

Harshjit Sethi, Managing Director at Peak XV, highlighted the challenges organizations face in implementing AI due to a shortage of data science expertise. “There is a huge gap in data science expertise across organisations. It either makes them rely on external consultants or drop these projects altogether. RapidCanvas’ innovative approach of combining AI agents with subject matter experts helps organisations fill this gap and drive results in a scalable and efficient manner,” Sethi noted.

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