Socratix AI Raises $4.1 Million to Build AI Coworkers for Fraud Teams

Socratix AI has secured $4.1 million in seed funding led by Pear VC, with participation from Y Combinator, Twenty Two Ventures, Transpose Platform Management, and several angel investors. The company plans to use the funding to expand hiring across engineering and go-to-market teams, strengthen partnerships in the fraud and risk sector, and advance product research and development.

The Bay Area-based startup is developing autonomous AI coworkers that assist fraud and risk teams by investigating and resolving alerts in real time. These AI agents aim to reduce review times from hours to minutes by consolidating fragmented data and providing explainable recommendations to human analysts.

Founded by Riya Jagetia and Satya Vasanth Reddy Tumati, Socratix focuses on helping banks and fintechs address the growing challenge of AI-driven fraud. Early users have reported significant efficiency gains, with some review processes reduced from a full day to as little as 15 minutes.

The company is currently expanding its team and industry collaborations as it continues to develop AI systems that enhance fraud detection and decision-making capabilities for financial institutions.