By Kashmira Konduparty
Former Instacart employees have raised $8.5 million for their startup, Champ AI, which focuses on automating bark-office operations using artificial intelligence, according to a report by Business Insider. The funding round was led by Redpoint Ventures with participation from defy.vc, SV Angel and Instacart co-founder Max Mullen.
Champ AI was founded by former Instacart engineers Jagannath Putrevu, Ted Cheng and Peter Lin. The founders said their experience at Instacart exposed them to operational inefficiencies caused by rapid scaling. They said operations teams often struggled with repetitive manual tasks during periods of company growth.
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Champ AI develops AI “agents” designed to automate administrative and operational work. The software can log into websites, process websites, update spreadsheets, send emails and even make phone calls. CEO Jagannath Putrevu described the platform as “both the brain and the hands” of operational teams.
The startup already reportedly has more than 10 paying customers across logistics, healthcare and e-commerce. One customer, sports card marketplace Arena Club, said the software improved card-processing speed by about 30%. Champ AI says its tools can help companies launch operational workflows in weeks instead of months.
Champ AI enters a rapidly expanding market for AI-powered workplace automation tools. The company competes with larger firms such as UiPath and Microsoft’s Power Automate platform. Businesses are increasingly investing in AI systems to reduce repetitive work, lower costs and improve efficiency.
The founders said Champ AI is targeting work often handled by outsourced labor teams. Putrevu said the software is not meant to replace employees entirely, but instead reduce the need for long onboarding and repetitive tasks. The debate reflects broader concerns about how AI could reshape administrative and support jobs across industries.
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Champ AI currently has six employees. The company plans to use the new funding to hire software engineers, sales staff and “forward- deployed engineers” who work directly with clients. The startup also plans to expand product development as demand for AI agents grows.
Champ AI’s funding round highlights growing investor interest in AI startups focused on workplace automation rather than consumer chat bots alone. As companies search for ways to streamline operations and reduce manual workloads, AI-driven back-office tools are becoming an increasingly competitive area of the technology industry.