TLDR: Socratix AI has successfully closed a $4.1 million seed funding round, led by Pear VC, to advance its mission of empowering fraud and risk teams with autonomous AI coworkers. The company aims to drastically reduce investigation times from hours to minutes, enabling financial institutions to combat the rising tide of AI-powered fraud more effectively while keeping human analysts in control.
SAN FRANCISCO, CA – October 28, 2025 – Socratix AI, a pioneering company dedicated to developing autonomous AI coworkers for fraud and risk teams, today announced it has raised $4.1 million in seed funding. The round 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 substantial investment is earmarked to accelerate hiring across critical engineering and go-to-market teams, bolster the company’s engagement in key fraud and risk industry organizations, and fuel ongoing product research and development.
Socratix AI is directly addressing one of the most pressing challenges confronting the financial services sector: enabling fraud and risk departments at banks and fintech companies to keep pace with the escalating sophistication of AI-powered fraud. In the current landscape, malicious actors are leveraging automation, synthetic identities, and generative AI to overwhelm traditional, often outdated, defense mechanisms. This leaves fraud analysts mired in time-consuming manual investigations, grappling with siloed data, and making costly judgment calls.
“Fraud analysts are drowning in manual work while fraudsters are scaling with AI,” stated Riya Jagetia, CEO and Co-Founder of Socratix AI. “We’re building AI coworkers that take on the repetitive tasks, allowing human experts to focus on critical decisions and strategic oversight.”
The company is ushering in a new era for fraud operations, built upon the firsthand experiences of its founders. CEO and Co-Founder Riya Jagetia previously designed fraud detection and investigation systems for prominent brands, achieving millions in annual savings and tripling team efficiency through innovative analyst tooling. Co-founder Satya Vasanth Reddy Tumati brings extensive expertise in constructing scalable AI systems for petabyte-scale data and developing enterprise products from inception. Both MIT, IIT, and UCLA alumni, Jagetia and Tumati are combining their deep knowledge in fraud operations and artificial intelligence to create AI coworkers capable of investigating and resolving alerts in real-time. These solutions unify fragmented data and provide clear, explainable recommendations, thereby strengthening human judgment.
Ryan Sells, Partner at Pear VC, expressed strong confidence in the venture: “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’s solutions are designed to streamline manual workflows and accelerate decision-making, helping banks and fintechs reduce fraud losses, protect customer trust, and scale operations without a proportional increase in headcount. The company is headquartered in the Bay Area and is actively seeking world-class talent to join its mission to redefine how institutions defend against AI-driven fraud.
