OnFinance AI raises $4.2 Mn led by Peak XV’s Surge

OnFinance AI, a 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 Shyamal Hitesh Anadkat, Groww Founders’ Fund, MarsShot VC (Razorpay Founders’ Fund), Climber Capital, and existing investors Indian Angel Network (IAN) and Silverneedle Ventures (SNV).

The Bengaluru-based startup had previously raised $1.05 million in a seed funding round from Haystack and others. The fresh funds will be used to expand its proprietary BFSI-focused AI models, accelerate R&D and hiring in engineering and AI research, and extend its reach to international markets.

Co-founded in 2023 by Anuj and Priyesh Srivastava, OnFinance AI develops generative AI-powered systems for regulatory compliance, risk management, and audit automation in the BFSI sector. Its flagship platform, ComplianceOS, powered by the proprietary NeoGPT LLM, hosts over 70 intelligent agents that help banks, insurance companies, and asset managers interpret regulations, monitor compliance, and streamline internal processes.

NeoGPT, India’s first BFSI-specific large language model, is fine-tuned on more than 300 million tokens of regulatory data from SEBI, RBI, IRDAI, and AMFI publications. Alongside ComplianceOS, the company offers InvestigativeOS, which provides specialized compliance and risk capabilities, including KYC compliance, cyber security and resilience framework (CSCRF) compliance, SEBI accessibility compliance for PwD rules, vendor risk assessment, and AI-powered surveillance for market abuse, insider trading, and front-running.

OnFinance AI leverages AI models and deep financial domain data to transform manual compliance workflows into automated, efficient processes, helping financial institutions maintain clarity and confidence in compliance while focusing on innovation and growth.