BFSI-Focussed AI Startup OnFinance Raises $4.2 Mn

Bengaluru-based OnFinance Ai has raised $4.2 Mn (about INR 37 Cr) in its pre-Series A round led by Peak XV’s Surge. The round also 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 use the capital to expand contracts with Indian clients, foray into the US and MENA markets, and double down on BFSI-specific large language model (LLM) research.

Founded in 2023 by Anuj Srivastava and Priyesh Srivastava, OnFinance is an AI startup focussed on the BFSI sector. Initially, it provided AI copilots for equity research analysts. Within a year, it pivoted to compliance, risk and audit.

“Earlier, we were helping equity analysts draft research reports. But we realised LLMs struggle in open-ended use cases. Compliance data, on the other hand, is close ended, like SEBI circulars or RBI guidelines. That makes it perfect for enterprise-grade AI,” cofounder and CEO Anuj told Inc42.

The pivot led to the creation of ComplianceOS, an operating system for compliance officers. It is powered by NeoGPT, OnFinance’s proprietary BFSI-focused LLM. NeoGPT is a fine-tuned model built on top of open-source Llama 3.3, trained on decades of SEBI, RBI, IRDAI and AMFI data. 

Besides, the startup has developed InvestigativeOS, which hosts more than 70 AI agents for risk and audit tasks such as KYC validation, SEBI’s cyber resilience compliance, vendor risk assessment, accessibility compliance, and market abuse surveillance of insider trading, front running, and manipulative trades.

The startup counts the BSE, Kotak Mutual Fund, Nippon Mutual Fund, HDFC Securities and Aditya Birla Capital Digital among its 15-plus clients. It claims to have ended FY25 with more than $600,000 in operating revenue and total contract value in the range of $1.8 Mn to $2 Mn. 

“In March 2025, we were EBITDA positive. For the year (FY25), we were nearly breakeven with about INR 74 Lakh loss,” Anuj noted.

OnFinance AI Eyes Global Expansion

The startup is now focussing on expanding outside India. It is running pilots with banks in the US and expects contract sizes to be two to three times larger than in India. 

“If one bank’s compliance unit is using our agent, the next target is their brokerage or insurance arm. The upsell potential is strong, and in the US, deal sizes are significantly larger,” the cofounder said.

The startup deploys its AI stack either on-premises, helping institutions procure GPUs for bare metal servers, or on private cloud through AWS, Azure, GCP or Oracle. It has also built an MCP (Model Context Protocol) server which acts as a connector between its AI agents and clients’ systems of record such as HRMS or internal governance tools. This is what makes the system production-ready, Anuj said.

The funding comes as the fintech sector continues to see rapid adoption of AI. As a result, investors are aggressively backing AI startups focussed on the financial services sector. Several agentic AI startups offering their services to the fintech sector have raised funding in recent months.

For instance, fintech-focussed AI SaaS startup Pascal AI raised $3.1 Mn in a round led by Kalaari Capital. iTuring.ai secured $5 Mn from Dallas Venture Capital and Mela Ventures for its no-code BFSI AI platform in July.