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Bengaluru-based OnFinance AI, a startup developing artificial intelligence solutions for the banking, financial services, and insurance (BFSI) sector, has raised $4.2 million (around INR 37 crore) in a
Bengaluru-based OnFinance AI, a startup developing artificial intelligence solutions for the banking, financial services, and insurance (BFSI) sector, has raised $4.2 million (around INR 37 crore) in a pre-Series A funding round. The round was led by Peak XV’s Surge and saw participation from prominent investors including Groww Founders’ Fund, MarsShot VC (Razorpay Founders’ Fund), Climber Capital, and Shyamal Hitesh Anadkat, Head of Applied AI at OpenAI, alongside existing backers Indian Angel Network and Silverneedle Ventures.
The fresh capital will be used to strengthen OnFinance AI’s position in India, expand contracts with domestic BFSI clients, and accelerate its entry into the US and MENA markets. In addition, the startup plans to invest heavily in BFSI-specific large language model (LLM) research, aiming to offer tailored AI solutions that cater to the complex needs of banks, insurance companies, and fintech firms.
OnFinance AI specializes in artificial intelligence applications for the BFSI sector, leveraging large language models and machine learning to improve risk assessment, fraud detection, customer service, and operational efficiency. By focusing on the BFSI domain, the startup aims to deliver industry-specific AI solutions that can handle regulatory compliance, sensitive financial data, and sector-specific workflows.
The company’s solutions help financial institutions automate complex processes, enhance decision-making, and improve customer experiences while maintaining high standards of data privacy and security.
With this funding round, OnFinance AI is preparing to scale its operations internationally. The startup aims to tap into the US and MENA markets, regions with growing demand for AI-powered financial solutions. By leveraging its expertise in BFSI-specific AI, OnFinance AI hopes to differentiate itself from generic AI providers.
The startup is also focused on strengthening its research and development capabilities, particularly in large language models customized for BFSI applications. This includes advanced natural language processing for financial documents, predictive analytics, and AI-driven insights for banking and insurance clients.
The participation of investors like Shyamal Hitesh Anadkat from OpenAI, as well as the backing from established venture funds like Groww Founders’ Fund and MarsShot VC, highlights strong market confidence in OnFinance AI’s vision and technological capabilities. These investors bring not only capital but also strategic guidance and industry connections to help the startup scale efficiently.
The involvement of Indian Angel Network and Silverneedle Ventures also demonstrates continued support from the startup’s early backers, reflecting confidence in the company’s growth trajectory and market potential.
The BFSI sector is increasingly adopting AI technologies for risk management, regulatory compliance, customer engagement, and fraud prevention. Startups like OnFinance AI are positioned to capitalize on this trend by providing domain-specific AI solutions that address industry challenges more effectively than generic tools.
Large language models and AI-driven analytics are set to revolutionize how financial institutions operate, enabling faster decision-making, more accurate predictions, and enhanced operational efficiency. OnFinance AI’s focus on tailored AI solutions for BFSI gives it a competitive edge in this rapidly evolving sector.
With $4.2 million in fresh funding, OnFinance AI plans to accelerate growth both domestically and internationally. Its expansion strategy includes:
The startup’s strategic approach combines technology innovation, domain expertise, and global expansion, positioning OnFinance AI as a significant player in the AI-driven BFSI landscape.
OnFinance AI’s latest funding round reflects strong investor confidence in BFSI-focused AI solutions and underscores the growing importance of artificial intelligence in transforming the financial services sector. By leveraging this capital, the startup is poised to expand globally, enhance its product offerings, and strengthen its position as a leading AI partner for financial institutions.
As BFSI organizations worldwide increasingly adopt AI for efficiency, compliance, and customer engagement, OnFinance AI’s specialized approach could set it apart, creating opportunities for rapid growth and market leadership in the AI-driven financial services domain.
