TLDR: OnFinance AI, a Bengaluru-based generative AI platform specializing in solutions for the Banking, Financial Services, and Insurance (BFSI) sector, has successfully raised $4.2 million in a Pre-Series A funding round. The investment was led by Peak XV’s Surge, with participation from several prominent investors, and will be used to expand its proprietary AI models, accelerate R&D, and facilitate international expansion.
Bengaluru, India – September 22, 2025 – OnFinance AI, a pioneering generative AI platform dedicated to the Banking, Financial Services, and Insurance (BFSI) sector, today announced it has secured $4.2 million in a Pre-Series A funding round. The significant investment was spearheaded by Peak XV’s Surge, underscoring confidence in OnFinance AI’s innovative approach to financial technology.
The funding round also saw robust participation from a diverse group of investors and operators, including Shyamal Hitesh Anadkat from OpenAI, Groww Founders’ Fund, MarsShot VC (Razorpay Founders’ Fund), and Climber Capital. Existing investors, Indian Angel Network (IAN) and Silverneedle Ventures (SNV), also reaffirmed their commitment by participating in this round.
Founded in 2023, OnFinance AI is headquartered in Bengaluru with an additional office in Mumbai. The company specializes in developing generative AI-powered agentic systems tailored for the BFSI sector, with a strong focus on critical areas such as regulatory compliance, risk management, and audit automation. Their flagship products, NeoGPT and ComplianceOS, are designed to deliver regulator-grade outcomes that surpass the capabilities of traditional processes and generic AI models.
Priyesh Srivastava, Co-Founder & CTO of OnFinance AI, emphasized the company’s unique value proposition, stating, “Generic AI cannot solve BFSI’s problems. With NeoGPT and ComplianceOS, we are already delivering regulator-grade outcomes that traditional processes and generic models cannot match. This capital will allow us to double down on research, expand internationally, and continue pioneering agentic AI for compliance and risk.”
The newly acquired capital will be strategically deployed to expand OnFinance AI’s proprietary BFSI-focused AI models, accelerate research and development efforts, and bolster its engineering and AI research teams through key hires. Furthermore, the company plans to extend its market reach into new international territories, including the Middle East and North Africa (MENA) region and the United States.
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OnFinance AI currently serves a growing roster of Indian financial institutions, including notable clients such as BSE Limited, Kotak Mutual Fund, Nippon India Mutual Fund, Aditya Birla Capital Digital, and HDFC Securities, among others. This funding round marks a pivotal step in OnFinance AI’s mission to transform financial institutions’ approach to compliance, risk, and audit through advanced AI solutions.
