TLDR: Socratix AI, a San Francisco-based company, has successfully raised $4.1 million in seed funding. This investment, led by Pear VC and joined by Y Combinator, Twenty Two Ventures, and others, will fuel the development and expansion of its AI-powered solutions designed to empower fraud and risk teams. The company aims to combat the rising tide of AI-driven fraud by providing ‘AI coworkers’ that streamline investigations, unify data, and offer explainable recommendations, significantly reducing manual effort and accelerating decision-making for financial institutions.
San Francisco, CA – October 28, 2025 – Socratix AI, a pioneering company focused on developing autonomous AI coworkers for fraud and risk teams, today announced the successful closure of a $4.1 million seed funding round. The investment was spearheaded by Pear VC, with significant contributions from Y Combinator, Twenty Two Ventures, Transpose Platform Management, and a distinguished group of strategic angel investors. This capital injection is earmarked to accelerate key initiatives, including expanding hiring across engineering and go-to-market teams, increasing participation in critical fraud and risk industry organizations, and bolstering ongoing product research and development.
The funding arrives at a crucial time as financial services grapple with an escalating challenge: keeping pace with increasingly sophisticated, AI-powered fraud. Fraudsters are leveraging automation, synthetic identities, and generative AI to overwhelm traditional defenses, leaving human fraud analysts bogged down in time-consuming manual investigations, fragmented data, and complex judgment calls. Socratix AI is stepping in to redefine fraud operations, offering a transformative solution to this urgent industry problem.
Socratix AI’s innovative approach centers on building ‘AI coworkers’ or ‘AI agents’ that are designed to investigate and resolve alerts in real-time. These AI agents aim to unify disparate data sources and deliver clear, explainable recommendations, thereby strengthening human judgment rather than replacing it. The company’s solutions promise to cut investigation times from hours to mere minutes, streamline manual workflows, accelerate critical decisions, reduce fraud losses, protect customer trust, and enable financial institutions to scale their operations efficiently without a proportional increase in headcount.
The company was founded by Riya Jagetia, CEO and Co-founder, and Satya Vasanth Reddy Tumati, Co-founder. Both founders bring extensive firsthand experience to the problem they are solving. Riya Jagetia previously designed fraud detection and investigation systems for major brands, achieving millions in annual savings and tripling team efficiency through analyst tooling. Satya Vasanth Reddy Tumati contributes deep expertise in building scalable AI systems for petabyte-scale data and enterprise products from inception. The duo, alumni of prestigious institutions including MIT, IIT, and UCLA, are applying their combined knowledge in fraud operations and AI to create these advanced ‘AI coworkers’.
Commenting on the funding, Riya Jagetia stated, “Fraud analysts are drowning in manual work while fraudsters are scaling with AI.” She emphasized the company’s mission to equip fraud fighters with the tools needed to counter this imbalance. Ryan Sells, Partner at Pear VC, expressed confidence in the founders, remarking, “At Pear, we’re drawn to founders who combine deep technical ability with real earned insight. Riya and Satya know firsthand how fraud and risk teams operate, and where existing systems break down. Socratix is building AI coworkers that make those teams faster, smarter, and more resilient. We’re proud to back them as they help define the next era of agentic software in financial services.”
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Socratix AI is headquartered in the Bay Area and is actively seeking world-class builders to join its mission to redefine how institutions defend against AI-driven fraud.
