OnFinance AI raises $4.2m to expand generative AI for BFSI

By Vriti Gothi

OnFinance AI, a Bangalore-based FinTech specialising in generative AI for the Banking, Financial Services, and Insurance (BFSI) sector, has secured $4.2 million funding round. The investment will accelerate the company’s efforts to expand its proprietary AI platforms in India and globally, reinforcing its vision of reshaping compliance, research, and regulatory operations for financial institutions.

At the core of OnFinance AI’s innovation is NeoGPT, India’s first Large Language Model built specifically for BFSI applications. NeoGPT powers ComplianceOS, the company’s flagship platform that automates compliance monitoring, streamlines regulatory tracking, and delivers audit-ready reports. The solution is designed to save compliance teams over 100 hours per regulatory release, shifting their focus from manual processes to strategic decision-making.

OnFinance AI’s technology is engineered for explainability, traceability, and auditability, addressing the critical need for transparency in regulated financial environments. By interpreting directives from regulators such as SEBI, RBI, IRDAI, and AMFI, as well as global authorities, the platform ensures that outputs remain reliable and resistant to “hallucination.” This alignment of AI capabilities with regulatory rigor positions the company as a trusted partner for financial institutions navigating complex compliance landscapes.

The fresh capital will support product innovation, strengthen research and development, and enable expansion into new geographies, including the MENA region and the United States. It will also allow the company to invest in building high-calibre teams that bring together expertise in artificial intelligence, data science, and regulatory compliance.

OnFinance AI already works with some of India’s most prominent institutions, including NSE, BSE, ICICI Bank, and HDFC Mutual Fund, underlining its strong market traction. By embedding generative AI into critical BFSI workflows, the company is setting new benchmarks for efficiency, scalability, and accuracy. Financial institutions benefit not only from reduced costs and faster processes but also from enhanced resilience and agility in responding to regulatory change.

With this funding, OnFinance AI is well-positioned to advance its market leadership and redefine how generative AI can be responsibly and effectively deployed in highly regulated industries. The company remains committed to delivering future-ready solutions that combine technological innovation with regulatory alignment, driving digital transformation across the financial services ecosystem.