Bengaluru based OnFinance AI has secured significant venture backing, reflecting the robust investor appetite for artificial intelligence startups across India’s technology sector. The fintech startup has successfully concluded a $4.2 million pre Series A funding round, demonstrating strong investor confidence in its specialized approach to financial services compliance automation.
Peak XV’s Surge spearheaded the investment round, joined by a consortium of prominent backers including Groww Founders’ Fund, MarsShot VC (Razorpay Founders’ Fund), Climber Capital, and existing investors Indian Angel Network and Silverneedle Ventures. Particularly noteworthy is the participation of Shyamal Hitesh Anadkat, who serves as head of Applied AI at OpenAI, underscoring the technical credibility of OnFinance’s offerings.
Strategic Pivot Drives Technology Innovation
Founded in 2023 by Anuj Srivastava and Priyesh Srivastava, OnFinance initially focused on developing AI copilots for equity research analysts. However, the company executed a strategic pivot toward compliance, risk, and audit solutions after recognizing that large language models perform more effectively in structured regulatory environments compared to open-ended research applications.
This strategic repositioning led to the development of ComplianceOS, powered by NeoGPT, the company’s proprietary BFSI-focused language model. Built upon the open-source Llama 3.3 foundation, NeoGPT has been specifically trained using decades of regulatory data from SEBI, RBI, IRDAI, and AMFI. Additionally, the startup has created InvestigativeOS, featuring over 70 AI agents designed for various risk and audit functions.
Market Success Enables Global Expansion
OnFinance’s commercial traction validates its market approach, with a client portfolio encompassing major financial institutions including BSE, Kotak Mutual Fund, Nippon Mutual Fund, HDFC Securities, and Aditya Birla Capital Digital among its 15 plus customers. The company reported operating revenue exceeding $600,000 and total contract value ranging between $1.8-2 million, while achieving EBITDA positivity by March 2025.
The fresh capital will fuel international expansion initiatives, with the company targeting the United States and MENA markets. Management anticipates significantly larger contract values in these regions, leveraging the scalable nature of their compliance technology platform across diverse financial services segments.
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