Bengaluru-Based OnFinance AI Raises $4.2 Million

OnFinance AI, an AI-powered platform for regulatory compliance, led by Anuj Srivastava, Priyesh Srivastava, Avantika Sharma, and others, has secured $4.2 million led by Peak XV’s Surge and saw participation from Groww Founders’ Fund, MarsShot VC (Razorpay Founders’ Fund), Climber Capital, Shyamal Hitesh Anadkat, head of Applied AI at OpenAI, along with existing backers Indian Angel Network and Silverneedle Ventures. 

The startup will utilize the funds to expand its Indian client base, enter the US and MENA markets, and advance its BFSI-focused LLM research.

OnFinance has built ComplianceOS, an operating system for compliance officers powered by its proprietary BFSI LLM, NeoGPT, trained on SEBI, RBI, IRDAI, and AMFI data. It also offers InvestigativeOS, with 70+ AI agents for risk and audit tasks like KYC, vendor risk, cyber resilience, and market abuse surveillance. Clients include BSE, Kotak Mutual Fund, Nippon MF, HDFC Securities, and Aditya Birla Capital Digital. The firm closed FY25 with $600K+ revenue and $1.8–2M in contract value.

The startup is now piloting with US banks, where it expects contract sizes to be 2–3x larger than in India. Its AI stack can be deployed on-premises with GPU-backed servers or on private cloud (AWS, Azure, GCP, Oracle). A proprietary MCP server connects AI agents with clients’ systems of record, making deployments production-ready.

The funding comes amid surging AI adoption in fintech, with investors backing sector-specific startups. Recent deals include Pascal AI ($3.1M, Kalaari Capital) and iTuring.ai ($5M, Dallas VC & Mela Ventures).