Indian AI startup Runable has raised $21 million in a Series A round as it expands from AI-powered website and app creation into a more ambitious market: using autonomous agents to help small businesses find customers, run marketing campaigns and generate revenue.

The Bengaluru-based company said the funding round was co-led by Susquehanna Venture Capital and Nexus Venture Partners, with existing investors Together Fund and Array VC also participating. The all-equity financing values Runable at $65 million after the investment, according to co-founder and CEO Umesh Kumar.

Founded in 2025, Runable is entering a crowded AI market dominated by companies such as OpenAI and Anthropic and coding platforms including Cursor, Lovable and Replit. But rather than competing solely to build better websites, applications or software from natural-language prompts, Runable is betting that the next stage of AI adoption will be about what happens after a product has been built.

“In the end, a business doesn’t require Codex or Claude Code or anything. They require real outcomes,” Kumar told TechCrunch. “If I am paying an agency $10,000 to run my Google Ads, can someone come in and do it for me for a lower price? That’s where Runable comes in.”

In the AI-agent market, generative AI has dramatically reduced the technical barriers to creating software, allowing people with limited coding experience to build websites, applications, and digital products. As those capabilities become increasingly commoditized, the competitive frontier is moving toward agents that can execute entire business processes rather than simply generate content or code.

Runable is positioning itself around that opportunity.

Its AI agent can already create websites, applications, presentations, and other digital assets through natural-language instructions while managing elements such as deployment and analytics. The company is now adding tools intended to help businesses acquire customers, including advertising, social-media management, search-engine optimization and efforts to improve how businesses appear in AI chatbot results.

The longer-term proposition is considerably broader than an AI website builder. Kumar wants business owners to be able to tell Runable how many customers they want and have the agent determine the digital infrastructure, advertising and distribution required to pursue that target.

That would place Runable closer to an AI-powered digital agency than a conventional software-development platform.

The company’s origins were different. Kumar and co-founder Saksham Sarda initially built Runable as an AI infrastructure company focused on browser technology capable of scraping data at scale. But customers began using the browser-based agent for tasks such as creating presentations and websites, prompting the founders to shift toward a general-purpose AI agent.

The pivot appears to have generated rapid early adoption. Kumar said Runable reached a $2 million annualized revenue run rate within three weeks of beginning to accept payments in March. The startup now claims about 1.7 million registered users, with the United States, United Kingdom and Japan among its largest markets. Brazil is another market where it has users, although the company is concentrating increasingly on the first three countries.

Runable’s growth, however, comes with a significant economic challenge.

Kumar declined to disclose current revenue or the number of paying customers, but said users consumed more than 1 trillion tokens during the past 90 days, with paying customers accounting for roughly 60% to 70% of that usage.

The company is currently operating with negative gross margins because it subsidizes AI inference for customers. That makes the economics of its agent business dependent partly on the continuing decline in the cost of running AI models.

Kumar said Runable is using several models and developing some of its own technology, explaining that improving inference efficiency could eventually make the economics considerably more attractive.

“We are seeing this path where you can provide the same quality of inference at almost 10x less cost,” he said.

That cost curve could prove decisive. AI agents that autonomously perform multi-step tasks can consume substantially more computing resources than conventional software, particularly when they browse the web, generate content, analyze information, interact with external services and repeatedly call AI models.

The business model therefore depends on Runable being able to capture enough value from customers to cover the cost of the underlying intelligence and infrastructure.

There is another challenge: the largest AI companies are moving in the same direction.

OpenAI and Anthropic are increasingly developing agents capable of executing tasks rather than merely responding to prompts. Coding platforms such as Cursor, meanwhile, are also expanding beyond code generation into broader software-development workflows.

Runable’s response is to focus less on the underlying model and more on the outcome.

For a developer who wants to work directly with code and local files, Kumar acknowledged that products such as OpenAI’s Codex or Anthropic’s Claude Code may be better suited. Runable is instead targeting small-business owners who may have little interest in configuring AI models, analytics platforms, hosting systems, advertising accounts, and marketing tools.

That matters because the small-business market is large but fragmented, and many companies still rely on agencies or freelancers for digital marketing and customer acquisition.

However, the concern lies in an AI agent’s ability to reliably take responsibility for those outcomes rather than simply produce the assets needed to pursue them.

A test by TechCrunch illustrates the gap. When asked to build and deploy a website for a fictional coffee-subscription company and attract its first 100 visitors with a $25 advertising budget, Runable created the site and prepared an advertising campaign but stopped before launching it because the user needed to connect an advertising account.

That limitation exposes one of the biggest obstacles facing autonomous business agents: AI can generate the work, but real-world execution often requires access to external platforms, payment systems, customer accounts, and permissions.

Runable said it can currently run advertising without users connecting their own advertising accounts for ads on ChatGPT, through partnerships it declined to identify.

The company describes those partnerships as a “soft wedge” into a much larger opportunity.

Its closest competitors, according to Kumar, include general-purpose agents such as Manus and Genspark. The distinction Runable wants to establish is that these products are primarily designed to perform tasks, while Runable is attempting to connect those tasks directly to business growth.

That is a potentially important shift in the AI-agent race.

The first phase of generative AI was largely about creating information: text, images, code and presentations. The next phase is about taking actions. The more commercially valuable agents may ultimately be those that can connect creation with distribution, customer acquisition and revenue generation.

Runable is betting that small businesses will pay for that entire chain rather than for another tool that merely makes it easier to build a website.

Its $21 million funding round gives the company capital to pursue that bet. If it succeeds, the competitive advantage may not come from having the best AI model. It may come from owning the layer that turns capable models into customers, sales, and recurring revenue for businesses that do not have the time or expertise to manage the technology themselves.

Canada will impose retaliatory tariffs on about $20 billion of annual U.S. imports from Sept. 8, matching the latest U.S. duties dollar-for-dollar while unveiling a C$7.5 billion support package for businesses and workers affected by the escalating trade dispute.

The counter-tariffs will range from 15% to 50% and cover roughly 700 products imported from the United States, the Canadian government said Tuesday.

The measures come after U.S. President Donald Trump imposed new 50% tariffs on about $20 billion of Canadian imports on Saturday, following the collapse of trade talks between the two countries.

The latest exchange marks a significant deterioration in relations between two longtime economic allies and deepens uncertainty for companies operating across the world’s largest bilateral trading relationship.

“Our dollar-for-dollar, rate for rate counter-tariffs as well as a multi-billion dollar support package will protect workers, farmers, families, and businesses,” Canadian Finance Minister François-Philippe Champagne said.

Canada’s tariff schedule targets products according to their sensitivity to Canadian industries and the potential economic impact of the U.S. measures.

Steel, aluminum, furniture and clothing will face 50% tariffs, while cheese, appliances and some seafood will be subject to 25% duties. Electronics and tools will face 15% tariffs, a Canadian government official told reporters.

The measures will also cover prepared foods, perfumes and toiletries, plastics, lumber, wood pulp and paper, carpets and other clothing products. Industrial goods included in the tariff list range from iron and steel and aluminum to hand tools, machinery, electrical equipment, rail engines, motorcycles, furniture and gaming equipment, according to government documents.

Canada calculated its retaliatory tariffs using 2024 trade data. The targeted products represent nearly 4.5% of Canada’s imports from the United States. The U.S. measures, by comparison, affect roughly 5% of Canada’s exports to the United States. While relatively narrow in terms of overall trade, the tariffs could have disproportionate consequences for industries already under pressure.

Wood products are one area of concern, with Canadian kitchen cabinet manufacturers among the businesses potentially exposed to higher U.S. trade barriers.

The concentrated nature of the tariffs means the economic impact could extend well beyond the headline value of $20 billion. Companies facing higher duties may have to absorb some of the additional cost, raise prices, reduce production or reconsider investment and hiring.

Canada is seeking to cushion those effects through a C$7.5 billion package announced alongside the tariffs. The programme includes assistance for small and medium-sized businesses, financing intended to ease corporate cash-flow pressures and support for workers whose employment is threatened by the new trade barriers.

The Business Development Bank of Canada, the federal government’s business lender, will provide part of the financing. Affected companies will be able to access interest-free loans ranging from C$2.5 million to C$5 million.

Industry Minister Melanie Joly said companies would not have to begin repayments for 36 months, effectively taking the repayment period through the end of Trump’s current term. The assistance is intended to give businesses time to adjust their supply chains, find alternative markets and manage the financial shock from the tariffs.

Canada is also using the measures as a political tool.

Joly said the government had deliberately selected some products and industries in ways that could increase pressure on U.S. states ahead of the Nov. 3 midterm elections.

“We’re also targeting products that will target states in the U.S. and so we’re being wise and strategic to put political pressure,” she said.

The strategy represents a shift from simply responding to U.S. tariffs toward attempting to create political costs for American lawmakers and businesses in regions exposed to Canadian demand.

“We need to make sure that the competitors don’t have access to the Canadian market in a better way than their own… products,” Joly said.

The escalation comes after a confrontational series of trade measures between Washington and Ottawa.

Trump’s latest tariffs are relatively limited in terms of the share of total Canadian exports they affect, but their sector-specific impact could be significant. Canada’s dependence on the U.S. market means that even targeted restrictions can disrupt manufacturers and suppliers that have built their businesses around cross-border trade.

The Canadian response introduces a second layer of costs for U.S. exporters.

American companies selling the targeted goods into Canada will now face higher duties, potentially raising prices for Canadian consumers and businesses or forcing U.S. exporters to absorb some of the additional cost to preserve market share.

That creates the possibility of a broader economic spillover if the dispute continues.

The tariff exchange also threatens to complicate supply chains that have developed over decades of relatively open trade between the two economies. Many products cross the U.S.-Canada border multiple times before reaching consumers, meaning tariffs imposed at one stage can raise costs throughout the production chain.

The political rhetoric surrounding the dispute has also intensified.

Trump on Tuesday threatened to rename Lake Ontario, which borders both countries, “Lake America,” adding another provocative element to an already strained relationship.

The immediate priority for Canada is limiting the damage to industries exposed to U.S. tariffs while demonstrating that Washington cannot impose duties without facing a corresponding economic cost. For the United States, the latest measures risk increasing costs for exporters seeking access to the Canadian market while putting additional pressure on companies that rely on cross-border demand.

The larger economic concern is whether the new tariffs remain a temporary negotiating tactic or develop into a prolonged trade confrontation. If the measures remain in place, analysts say companies on both sides may begin making longer-term changes to sourcing, production and investment decisions. That could raise costs and reduce some of the efficiencies created by decades of integrated North American supply chains.

The C$7.5 billion Canadian support package may soften the immediate blow, but it does not remove the underlying uncertainty. The government’s interest-free loans provide companies with additional liquidity, while the delayed repayment schedule gives affected businesses time to adjust.

U.S. consumer inflation accelerated slightly in July, with the Federal Reserve’s preferred inflation gauge rising more than economists expected and keeping pressure on policymakers as they weigh when to adjust interest rates.

The personal consumption expenditures price index increased 0.2% on a seasonally adjusted basis in July, lifting annual inflation to 3.7%, according to data released Wednesday by the Commerce Department. Both readings were 0.1 percentage point above the Dow Jones consensus estimate.

The figures reinforce the challenge facing the Federal Reserve. Inflation has moderated from its earlier peaks, but remains substantially above the central bank’s 2% target, limiting the room for policymakers to ease monetary policy aggressively.

Core PCE, which excludes volatile food and energy prices and is closely watched for underlying inflation trends, rose 0.2% month-on-month and 3.3% from a year earlier. Both figures matched economists’ expectations.

The report also showed that household demand remained relatively resilient. Personal income increased 0.4% in July, while consumer spending rose 0.2%. Both were stronger than expected, suggesting that consumers continued to support economic activity even as inflation remained elevated.

The composition of the inflation data was mixed.

Goods prices fell 0.1% during the month, helped by a 2.7% decline in gasoline and other energy-related goods. Prices for furnishings and durable household equipment also fell, declining 0.9%. Services prices, however, increased 0.3%. Financial services and insurance prices rose 1.2%, while housing costs increased 0.3%.

The combination of resilient spending and persistent services inflation is important for the Fed because services tend to be less sensitive to changes in commodity prices and can therefore provide a better indication of underlying inflation pressures.

Financial markets reacted cautiously to the report. U.S. stock futures moved lower while Treasury yields rose, suggesting investors interpreted the figures as providing little additional justification for an imminent reduction in interest rates.

The data arrive as Federal Reserve officials prepare for their annual gathering in Jackson Hole, Wyoming, where Fed Chair Kevin Warsh is scheduled to deliver the keynote policy speech Friday.

The speech will be closely watched for indications about the central bank’s thinking on inflation and the future path of interest rates.

The Federal Open Market Committee is not scheduled to meet in August. Its next policy meeting is set for Sept. 15-16, giving officials several more weeks to assess inflation, employment, and economic activity before deciding whether to change the federal funds rate.

Markets are currently assigning roughly a one-in-three probability to a rate move at the September meeting, with expectations for a rate increase stronger later in the year, particularly in December.

Warsh, who took office in May, has so far been cautious about providing explicit guidance on the direction of monetary policy, preferring to allow incoming economic data and market conditions to shape expectations.

That approach is becoming more consequential as the bond market sends a different signal from short-term rate expectations.

Yields on both the 10-year and 30-year Treasury recently reached their highest levels since 2007, before the global financial crisis. The increase has been driven by several factors, including concerns about persistent inflation, the Federal Reserve’s commitment to its 2% inflation target, and the size of the U.S. government’s fiscal deficit.

Higher long-term yields can complicate monetary policy transmission by raising borrowing costs across the economy even if the Fed keeps its short-term policy rate unchanged.

The Treasury has also attempted to address pressure in the long-term bond market. Treasury Secretary Scott Bessent announced last week that the department would increase its purchases of outstanding government debt. The initiative is intended to improve Treasury-market liquidity and manage the composition of government borrowing.

Market participants, however, have questioned whether Treasury’s buybacks are large enough to exert a meaningful influence on long-term yields, particularly given the scale of government borrowing requirements.

But the latest inflation data appears to have added another complication.

Analysts note that if inflation remains above target while consumer spending and income continue to grow, the Fed may have less incentive to ease policy quickly. At the same time, elevated long-term Treasury yields are already tightening financial conditions for businesses and households.

The July PCE report therefore leaves the central bank facing a difficult balance. Inflation is moving gradually rather than surging, but it remains too high for comfort, while economic demand has not weakened enough to force an immediate policy response.

The key question for markets now is whether the July increase represents a temporary setback or evidence that inflation is becoming more persistent.

Warsh’s Jackson Hole speech on Friday is expected to provide the next major signal. Investors will be listening for whether the Fed remains focused primarily on bringing inflation back to 2% or is becoming more concerned about the economic and financial consequences of keeping interest rates restrictive for longer.

For now, the latest figures point to an economy that is still spending, earning, and growing, but with inflation sufficiently elevated to keep the Federal Reserve cautious.