Enterprise AI startup RapidCanvas has raised $29 Mn (about ₹280 Cr) in its Series B funding round led by Vertex Ventures SEA & India. The round also saw participation from new ventures Hitachi Ventures, along with existing investors Accel, Peak XV Partners, Valley Capital Partners and Titanium Ventures.
RapidCanvas will use the proceeds to expand its go-to-market teams and field AI engineering team across India, the US and Brazil. It will also invest in all three products — deepening the Enterprise Context Engine, expanding the skills library behind the Visual Development Canvas, and strengthening governance in the Operational Harness.
Founded in 2021 by Rahul Pangam and Uttam Phalnikar, RapidCanvas is an agentic AI startup that helps enterprises build and deploy AI applications as well as oversee their performance.
RapidCanvas claims that its annual recurring revenue (ARR) has grown 8X over the past six quarters.
So far, in 2026, more than 75 enterprises across manufacturing, financial services, retail, business services and infrastructure have made 1.4 Mn AI-led decisions using applications built on its platform.
RapidCanvas follows a subscription-based business model and targets large enterprises that have AI budgets but lack the in-house expertise to move beyond pilot projects. It claims that its platform is “trusted” by companies like PayPal, TresVista, Yale Appliances, Orion, Treetech, among others.
“Vibe coding has made it easy to start building with AI. Getting AI into production reliably and safely still remains the biggest gap. Our growth over the past six quarters is evidence that AI in enterprises is moving beyond pilots into production and real operations,” said cofounder and CEO Pangam.
Enterprise AI Draws Investor Interest
RapidCanvas’ fundraise comes amid growing investor interest in enterprise tech startups helping businesses deploy AI across their operations. Yesterday, enterprise AI startup Shamrock AI raised $5 Mn in a seed round led by Endiya Partners, with participation from Capria Ventures. A day earlier, Parallel Loop secured $6.6 Mn in a seed round led by 3one4 Capital to help businesses integrate AI into their existing systems and workflows.
The trend is also reflected in funding data for the Indian AI ecosystem. According to Inc42’s Indian Tech Startup Funding Report Q3 2026, AI startup funding surged 265% YoY to $438 Mn in the September quarter.
Investor sentiment, however, suggests that capital is not flowing indiscriminately across the AI stack.
Inc42’s Indian Investor Ranking & Sentiment Survey, based on responses from more than 85 institutional investors, found that 63% of investors see some degree of froth in Indian AI startup valuations. About half of those who see froth expect a correction within the next 18 months, while another 31% believe valuations are elevated but supported by real revenue.
The survey also points to a preference for AI applications that address specific industry needs. Vertical AI applications across sectors such as BFSI, healthcare, defence and agriculture emerged as the leading choice, with 39% of investors expecting them to capture the most value over the next five years. AI hardware and semiconductors followed at 23%, while AI-led IT and business services accounted for 18%.
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