On-Finance AI raises $4.2 million to expand BFSI generation AI

By Vriti Gothi

Onfinance AI, a Bangalore-based fintech specializing in AI for the banking, financial services and insurance (BFSI) sector, has secured a $4.2 million funding round. This investment accelerates our efforts to expand our own AI platforms across India and around the world, reinforcing our vision to reshape compliance, research and regulatory operations of financial institutions.

The core of on-finance AI innovation is NeoGPT, India's first large-scale language model built specifically for BFSI applications. NEOGPT powers its flagship platform, ConplianceOS, which automates compliance monitoring, streamlines regulatory tracking and provides audit-enabled reports, to Powers Powers Powers. The solution is designed to save more than 100 hours of compliance teams per regulatory release, shifting the focus from the manual process to strategic decision-making.

On-Finance AI technology is designed for explanability, traceability and auditability, addressing the critical need for transparency in a regulated financial environment. By interpreting directives from regulatory authorities such as SEBI, RBI, IRDAI, AMFI, and more, the platform, like global authorities, ensures that the output is reliable and resistant to “hastisation.” This integrity of AI capabilities and regulatory rigor rigor is positioned as a reliable partner for financial institutions navigating complex compliance environments.

Fresh Capital supports product innovation, enhances research and development, enabling expansion into new regions, including the MENA region and the US. The company can also invest in building a highly-calibre team that brings together artificial intelligence, data science and regulatory compliance expertise.

On-Finance AI has already worked with some of India's most prominent institutions, including NSE, BSE, ICICI Bank and HDFC Mutual Funds, highlighting its strong market traction. By embedding the generated AI into critical BFSI workflows, the company is setting new benchmarks for efficiency, scalability, and accuracy. Financial institutions benefit not only from reducing costs and faster processes, but also from increasing resilience and agility in responding to changes in regulations.

This funding makes On-Finance AI well positioned to promote market leadership and redefine how generation AI can be responsible and effectively deployed in highly regulated industries. The company remains committed to delivering future-ready solutions that combine innovation with regulatory integrity, and driving digital transformation across the financial services ecosystem.