OnFinance AI, a Generative AI platform focused on the banking, financial services and insurance (BFSI) sector, has raised $4.2 million (Rs 37 crore) in its pre-Series A funding round led by Peak XV Partners' Surge.

The funding round saw participation from Groww Founders' Fund, MarsShot VC, Climber Capital, and Shyamala Nadkat from OpenAI, along with existing investors Indian Angel Network (IAN) and Silverneedle Ventures (SNV).

The Bengaluru-based startup will use the fresh capital to expand its proprietary BFSI-focused AI models, accelerate research and development initiatives, scale hiring in engineering and AI research teams, and extend its reach to international markets including the US and UK.

OnFinance AI was founded by Anuj Srivastava and Priyesh Srivastava in December 2022, both BITS Pilani alumni.

 

The startup provides generative AI SaaS solutions specifically designed for financial institutions, offering ComplianceOS and InvestigativeOS platforms that enable BFSI institutions to transition from weeks of manual work to real-time, regulator-ready outcomes with over 90% of deployments on-premises or private cloud for enhanced security.

OnFinance AI previously raised $1.05 million in a seed funding round in November 2023, led by Indian Angel Network and Silverneedle Ventures. The company also received support from LetsVenture Fund, SSV Fund, and angel investor Kunal Shah of CRED.

The Indian fintech sector continues to attract significant investor interest, with AI-powered solutions for financial services representing a rapidly growing segment.