Artificial Intelligence (AI) startup DocSumo has raised $220,000 in seed funding from early-stage venture firm Better Capital, TechStars and Barclays.

The Mumbai-headquartered firm will use the funds to strengthen its product, marketing and sales engine, and also foray into newer markets. The company also plans to build a suite of Application Programming Interface products that will help lenders and insurers to automate their operations, it said in a statement.

“Even today, most financial services firms outsource their back-office operations in India where thousands of people do mundane tasks of entering data and verifying documents. Not only is it costly and takes a long time, but it is also error-prone. Using natural language processing, DocSumo automates the reading of documents to enable companies to make faster and accurate decisions,” Rushabh Sheth, founder and CEO of Docsumo said.

“Our aim is to build a ground-breaking AI solution that can read documents the way humans do and make data trapped in those documents actionable,” Sheth added.

The startup provides intelligent workflow automation for financial services companies to save back-office costs by up to 70 per cent through document data capture, analytics and fraud detection. The startup has its engineering team based out of Kathmandu, Nepal.

The document AI market is valued at $1.5 billion globally, and with recent advancements in computer vision, it is growing 70 per cent annually.