RapidCanvas gets $16M as it successfully puts AI agents to work, addressing tech talent shortage

Austin, Dec. 11, 2024 (GLOBE NEWSWIRE) -- As AI adoption accelerates, a critical shortage of technical talent threatens to bottleneck progress for many companies. RapidCanvas is breaking this barrier by democratizing AI-driven business transformation. Today, the company announced a $16M funding round for its AI agents that automate up to 75% of complex tasks traditionally performed by data scientists and engineers. These agents, powered by Large Language Models (LLMs), can process vast amounts of information, identify patterns, and make decisions, effectively replicating many human skills. 

The Series A funding round was led by Peak XV, with additional participation from Titanium Ventures and existing investors Accel and Valley Capital Partners. This brings RapidCanvas's total funding to over $23.5M since its inception in 2021. 

RapidCanvas founders: (L to R) Rahul Pangam and Uttam Phalnikar.

Although Gartner predicts over 80% of enterprises will implement AI-powered processes in the coming years, 68% of executives cite a lack of technical talent as a critical barrier. Data scientists and engineers are expensive and often tied up in repetitive coding and data transformation tasks – stretching out AI implementation, delaying return on investment (ROI), and stalling business growth.

Unlike traditional software that merely enables humans to do tasks quicker, RapidCanvas's AI agents can absorb and process information at an unprecedented scale, reading thousands of pages in seconds and performing tasks that would take humans days to complete. Uniquely, the platform adopts a hybrid approach that combines the power of AI agents with human expertise. While AI agents can handle up to 70% of coding tasks faster and more cost-effectively than humans, the remaining 30% of expert tasks—such as system design, hypothesis testing, and creative problem-solving—still require human intervention. This model allows RapidCanvas to deliver superior results with significantly fewer human resources, typically requiring only 1 or 2 expert engineers where traditional firms might employ 10.

The RapidCanvas AI Agents Canvas.

This ‘Service-as-Software’ approach is particularly effective in areas like coding, where AI agents can handle much of the routine, repeatable tasks. The market potential for this is staggering. With over 30 million software engineers and data scientists globally representing nearly $1 trillion in salaries, RapidCanvas estimates that 70% of these tasks can be performed by AI agents, freeing them to focus on valuable work that drives business growth.

RapidCanvas was founded by veterans of AI-powered business transformation. Co-founders Rahul Pangam and Uttam Phalnikar previously built Simility, an AI-powered risk management platform acquired by PayPal. Their technology was later integrated into PayPal's global fraud detection operations. The duo’s deep expertise in AI implementation and its real-world impact drives their vision mission to make AI accessible and effective for businesses of all sizes. The duo has also assembled a seasoned leadership team that has been part of multiple successful startup exits - including 5 IPOs.

“At RapidCanvas, we’re revolutionizing how businesses solve complex challenges by seamlessly integrating the power of generative AI with the expertise of domain specialists,” said Rahul Pangam, CEO and co-founder of RapidCanvas. “Our context-aware AI agents automate critical tasks like data preparation, transformation, and modeling, 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. Moreover, our Reliable AI framework ensures all outputs are validated, secure and explainable. This customer-centric approach empowers businesses to achieve results in days or weeks, not months—at a fraction of the cost of traditional methods. This funding round will accelerate our mission to make trusted, efficient AI transformation accessible to more enterprises.”

The company’s ‘Service-as-Software’ model marks an entirely new era in automation. For the past 25 years, Software-as-a-Service (SaaS) has dominated the software landscape. Although SaaS tools drive efficiency gains through workflow automation, their ROI is limited to productivity gains for employees, rather than direct business outcomes. In contrast, RapidCanvas directly links software costs to business outcomes. Its AI agents autonomously handle complex tasks, reducing the need for technical talent and delivering faster, more scalable results. This shift from indirect efficiency gains to tangible business results represents a fundamental change in how companies use software.

Harshjit Sethi, MD at Peak XV Partners, who led the Series A round, added “There is a huge gap in data science expertise across organizations. 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 organizations fill this gap and drive results in a scalable and efficient manner. RapidCanvas has seen a strong pull from the initial base of customers who are consistently adding new use cases, demonstrating the value it is delivering”

Looking ahead, RapidCanvas is well positioned to lead the charge in AI-powered business transformation. By eliminating the need for extensive technical expertise, RapidCanvas is able to overcome the skills gap and help enterprise companies unlock tailored AI solutions in less time, letting those companies focus on what truly matters: unlocking new growth opportunities and driving efficient revenue and profitability gains.

Ends 

Notes to the editor
Media images can be found here. For further information please contact the RapidCanvas press office: Bilal Mahmood on b.mahmood@stockwoodstrategy.com or +44 (0) 771 400 7257.

About RapidCanvas 
RapidCanvas is an AI platform that combines the precision and automation of AI agents with the deep domain knowledge of human experts to deliver reliable and measurable business outcomes. With RapidCanvas, enterprises create custom, high-performance, production-grade AI solutions 10X faster at 80% lower cost compared to traditional custom solutions.

RapidCanvas is recognized as a top 5 Data Science and Machine Learning platform by independent research firm G2 for customer satisfaction. RapidCanvas works with industry leaders in manufacturing, retail, and financial services to unlock the full potential of AI. Visit https://www.rapidcanvas.ai/ for more information or follow via LinkedIn, X or YouTube. 

About Peak XV Partners
Peak XV Partners (formerly Sequoia Capital India & SEA) is a leading venture capital firm investing across India, Southeast Asia and beyond. Over the last 18 years of operations in the region, Peak XV has grown to manage approx USD 9 billion in capital across 13 funds and invested in over 400 companies. The portfolio has seen 23 IPOs and multiple successful M&As, resulting in over USD 10 billion in realized and unrealised gains so far. For more, visit: www.peakxv.com. 

About Accel
Accel is a global venture capital firm that aims to be the first partner to exceptional teams everywhere, from inception through all phases of private company growth. Accel has been operating in India since 2008, and its investments include companies like BookMyShow, Browserstack, Flipkart, Freshworks, FalconX, Infra.Market, Chargebee, Clevertap, Cure Fit, Musigma, Moneyview, Mensa Brands, Myntra, Moglix, Ninjacart, Swiggy, Stanza Living, Urban Company, Zetwerk, and Zenoti, among many others. We help ambitious entrepreneurs build iconic global businesses. For more, visit: www.accel.com.

About Valley Capital Partners
Valley Capital Partners is a leading early stage venture capital firm backing mission-driven founding teams in enterprise and cloud infrastructure, cybersecurity, workflow automation and artificial intelligence. We leverage our deep professional networks and decades-long operating and investment experience to help founders build and scale their businesses into world-class companies. Valley Capital Partners is based in Menlo Park, CA with offices in Pittsburgh, PA and Hong Kong, SAR. For more, visit: www.valleycapital.vc.

About Titanium Ventures
Titanium Ventures Accelerates the Extraordinary – the venture capital firm fuels the growth of standout disruptors. In its first twelve years, 102 investments have generated 44 liquidity events including Auth0, BigCommerce, Box, Cloopen, CrowdStrike, DocuSign, GitLab, Nasuni, OpenGov and Snap. To date, Titanium Ventures’ Revenue Acceleration Platform has driven >USD$660M in revenue for its portfolio companies, extending their reach across the U.S., Australia, Asia, and the UK. In 2022, the firm announced the close of its third fund, bringing Funds Under Management to USD$1B. To see Titanium Ventures’ full portfolio and learn more, visit: www.ti.vc.