- Funding led by Peak XV, with participation from Shyamal Hitesh Anadkat (OpenAI), Groww Founders’ Fund, MarsShot VC (Razorpay Founders’ Fund), Climber Capital, and others.
- The investment will fuel hiring, BFSI-specific LLM innovation, and drive expansion to MENA and the US
OnFinance AI, the generative AI platform purpose-built for the Banking, Financial Services, and Insurance (BFSI) sector, has raised $4.2 million in a Pre-Series A funding round. The round was led by Peak XV’s Surge, with participation from prominent investors and operators including Shyamal Hitesh Anadkat from OpenAI, Groww Founders’ Fund, MarsShot VC (Razorpay Founders’ Fund), Climber Capital, along with existing investors Indian Angel Network (IAN) and Silverneedle Ventures (SNV).
Founded in 2023 and headquartered in Bengaluru with an additional office in Mumbai, OnFinance AI was created by a team of BFSI and AI domain experts to transform how financial institutions approach compliance, risk, and audit. Regulators in India publish thousands of pages of new circulars and guidelines every year, and compliance teams can spend days manually interpreting and implementing them. This slows institutions down and creates an unsustainable risk of costly errors.
OnFinance AI’s flagship platform, ComplianceOS, is powered by NeoGPT, India’s first BFSI-specific large language model, fine-tuned on more than 300 million tokens of regulatory data across SEBI, RBI, IRDAI, and AMFI publications. ComplianceOS brings automation and intelligence into the heart of compliance by hosting a suite of more than 70 regulatory AI agents that can interpret regulations, assign tasks, track deadlines, and generate audit-ready evidence in real time. Institutions using ComplianceOS already save over 100 hours of manual effort per regulatory circular, cutting processes that once took weeks down to minutes.
Alongside ComplianceOS, the company also offers its InvestigativeOS platform, which delivers deeper, specialized compliance and risk capabilities. These include KYC compliance, CSCRF (cyber security and resilience framework) compliance, accessibility compliance mandated under SEBI’s PwD rules, vendor risk assessment, and market abuse compliance AI for surveillance of insider trading, front-running, and manipulative behaviors. Together, these platforms give BFSI institutions an end-to-end compliance infrastructure that is proactive, auditable, and regulator-ready by design.
OnFinance AI is already trusted by leading financial institutions in India, including BSE Limited, Kotak Mutual Fund, Nippon India Mutual Fund, Aditya Birla Capital Digital, HDFC Securities, and many more BFSI institutions who use its systems to streamline compliance with major regulators. With this funding, the company will expand its proprietary BFSI-focused AI models, accelerate R&D and hiring in engineering and AI research, and extend its reach to new international markets. Expansion into MENA and the U.S. is already underway, with pilots in progress and a roadmap to adapt the platform to global regulatory regimes such as the SEC, OCC, and Federal Reserve.
“Our mission is to turn regulatory complexity into clarity for banks and financial institutions,” said Anuj Srivastava, Co-Founder & CEO of OnFinance AI. “This funding validates the urgent need for innovation in compliance. With the support of Peak XV and our other investors, we will accelerate BFSI-specific AI solutions that deliver unmatched clarity, speed, and trust.”
Priyesh Srivastava, Co-Founder & CTO, added: “Generic AI cannot solve BFSI’s problems. With NeoGPT and ComplianceOS, we are already delivering regulator-grade outcomes that traditional processes and generic models cannot match. This capital will allow us to double down on research, expand internationally, and continue pioneering agentic AI for compliance and risk.”
