Zango AI, a regulatory tech startup, has raised $4.8 million in a funding round led by venture capital firm Nexus Venture Partners.

Early backer South Park Commons also participated in the funding round. A bunch of angel investors including Richard Davies, CEO of Allica Bank, and Alan Morgan, senior partner, financial services, at McKinsey, also pooled in the capital as part of this funding round.

The startup will use the fresh investment to expand its team in Bengaluru and London. A part of the capital will also be used to to build other product modules for AI-native governance risk and compliance solutions. The startup will also be launching products in other verticals including insurance and asset management.

Zango AI, which was founded by  Ritesh Singhania and Shashank Agarwal, is training AI agents to read and interpret complex regulations helping financial services automate manual workflows in compliance.

"Our AI agents continuously read regulations, flag gaps, and keep your business audit-ready — transforming compliance from a box to tick into a growth advantage," it said.

Prior to founding Zango AI, Singhania launched ClearGlass, a pension regulation platform while Agarwal co-founded Third Watch, which was acquired by digital payments company Razorpay.

The startup currently has partnered with banks and fintechs across Europe and the UK such as Novobanco, Monzo and Juni.

In 2024, India emerged as the most active market for regtech deals in Asia, accounting for 34 deals (30% share), up from 32 deals in 2023, as per FinTech Global Research.