Founded in 2022 by BITS Pilani alumnus Anuj Srivastava, Bengaluru-based OnFinance is a GenAI SaaS solutions provider for the financial sector
The startup leverages its in-house LLM, NeoGPT, to provide tailored AI copilots to financial institutions for operations like research and analysis, relationship management, wealth management, sales and more
While the startup raised a $1.1 Mn cheque in a seed funding round in 2023, it is looking to bag $5-$8 Mn in its pre-Series A round by the end of the calendar year 2024
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The impact of artificial intelligence (AI) on organisations, sectors and industries the world over has been nothing short of transformative. A case in point is the banking and financial space, which is currently undergoing a major rejig, mostly positive, due to the advent of GenAI.
Notably, there is hardly any area of banking operations, from underwriting and customer service to wealth, risk and compliance management, which is left outside of the AI ambit.
Further, AI-based systems and processes are helping organisations reduce costs, increase workforce output and cull decision-making time and efforts.
Upping the ante with its vertical tech stack is OnFinance, which claims to increase per-employee efficiency by 7.5X. Founded in 2022 by BITS Pilani alumnus Anuj Srivastava, Bengaluru-based OnFinance is a GenAI SaaS solutions provider for the financial sector.
It leverages its in-house large language model (LLM), NeoGPT, to provide tailored AI copilots to financial institutions for operations like research and analysis, relationship management, wealth management, sales and more.
While OnFinance today boasts working with major banks, asset managers, wealth professionals and insurance companies in the US, the idea to float a startup that could automate multiple tasks of bankers and financial analysts germinated during Srivastava’s stints at Barclays and HSBC.
Today, Srivastava’s brainchild, OnFinance, works with key industry players like Oister Global, EY, LetsVenture and Motilal Oswal. It specialises in building AI copilots that accelerate work and seamlessly reduce turnaround time for key business tasks.
The Genesis Of OnFinance
For Srivastava, it all started with the idea to automate functions that needed the least human effort so that the human endeavour could be focussed towards more critical tasks.
During his professional stint, the techie identified that financial institutions could utilise automation in multiple functions, reducing stress and workload on employees and paving the way for more creativity and accountability.
Then, with his eyes set on optimising the internal workflows of financial institutions, Srivastava partnered with his college friend Priyesh Srivastava, which led to the incorporation of OnFinance in December 2022.
“Our vision with OnFinance AI has been to revolutionise the financial industry’s workflow efficiency through the power of AI. In my prior stints within the industry, I witnessed the inefficiencies plaguing financial institutions’ workflows. We saw an opportunity to leverage next-gen AI to transform these workflows…,” Srivastava told Inc42.
However, while the tech stack offered by the AI startup is capable of transforming workflows, there’s a catch.
OnFinance’s Competitive Edge
The overall GenAI technology is in its infancy and, therefore, isn’t immune to hallucinations. In addition, privacy and security risks run galore because of the open-source nature of popular LLMs like OpenAI’s ChatGPT and Google’s Gemini. In addition, using their tech at an enterprise level could cost a fortune.
For instance, according to Srivastava, companies looking to leverage OpenAI’s enterprise solution exclusively on-premises could have to dole out a minimum of $2 Mn to fine-tune their open-source model.
However, OnFinance resolves these concerns with its proprietary tech. The startup boasts a tech stack that differentiates it from the existing AI tech world over.
According to Srivastava, OnFinance’s proprietary vertical LLM, NeoGPT, sets it apart in the realm of AI-driven financial solutions.
“Data privacy and security are paramount in financial workflows, which is why we’re committed to on-premises solutions, ensuring client data remains confidential and secure. By meticulously fine-tuning open-source models like Llama and Bloom, we’ve crafted our own powerful in-house LLM, NeoGPT, that blends AI capabilities with human expertise for unprecedented automated performance,” he added.
Last year, the company secured $1.1 Mn in a seed funding round led by Silver Needle Ventures. The funding round also saw participation from LetsVenture, Indian Angel Network, Swadharma Source Ventures and Cred’s founder Kunal Shah.
Utilising their vertical LLM and the funds, the company has developed two AI copilots. First is an AI copilot for financial research. The second copilot is deployed in the client relationship management function, where relationship managers can use the tech to give real-time insights to clients.
These copilots are set up at their clients’ preferred locations, which means the clients are in full control of their digital assets.
What’s Next For OnFinance?
Currently, the startup offers its two copilots to banks and asset management firms at $499 a month for a 1TB plan. Moving ahead, the startup has plans to expand its product offerings. Srivastava said that the startup is looking to introduce two new copilots. While one will specifically aid in equity research, the second will assist in credit analysis.
In addition, the startup, which has little to no presence in India, will focus on building its user base in the country, all while multiplying its users in the US.
The company also has plans to improve its tech stack and ramp up hiring. Given that the tech that OnFinance has built is extremely capital-intensive, it is looking to raise another round of funding by the end of this calendar year.
Once the funding talks pan out, the AI startup will also be in the position to expedite its India entry. Without revealing the names of investors, Srivastava said that the startup is looking to raise $5-8 Mn in pre-Series A funding.
The funding talks are expected to yield favourable results on the back of investors’ positive tilt towards the GenAI space. While funding raised by Indian GenAI startups between 2019 and 2023 may not look very appealing at only $580 Mn+, it must be noted that the space is ticking with opportunities.
Given that the Indian GenAI space is projected to grow exponentially in the next few years, surpassing $17 Bn by 2030 from $1.1 Bn in 2023, OnFinance’s India entry will likely be fruitful. For now, it would be interesting to see how the AI startup plans to solidify its footprint in the region, which has tough regulatory guardrails in place for the financial sector.
[Edited by Shishir Parasher]
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