Major highlights

  • Seed round led by Frontline Ventures, with participation from existing investors; Y Combinator, Pioneer Fund, and Moonfire Ventures.
  • Flagright’s proven AI capabilities are saving users significant costs not only by proactively combating financial crime but also by cutting costly false positive alerts by 93%.
  • Funding to accelerate AI innovation, including the launch of the AI Forensics product family.
  • Launch of Flagright's Startup Program which offers fintechs enterprise-grade AML compliance tools at startup-friendly pricing model
  • The team announces $4.3M in seed funding as well as a global expansion with offices opening in London, New York and San Francisco.

01.04.2025 - London, UK.

‍AI-native AML compliance platform Flagright today announces a $4.3M seed round to further develop Flagright solutions and fund international expansion. The raise was led by Frontline Ventures, with contributions from a series of notable angel investors.

AI-powered financial crime can take many shapes. In one particular case, an employee at a Hong Kong-based institution was tricked into sending a fraudster some $25M, after a video call with what seemed to be their colleagues and CFO. Some experts estimate that today, around half of all bank scams involve AI in one shape or another. One report suggests that in 2023, deepfake instances in fintech increased by 700%.

Fortunately, one team is harnessing AI to counter hackers with compliance methods just as innovative, and evolving just as quickly, as those used by fraudsters.

Baran Ozkan and Madhu Nadig co-founded Flagright in 2022 after the pair realised that no existing financial compliance teams were successfully delivering on promises made about speed, efficiency and quality of service. Given their findings, the duo decided they wanted to build something they would want to buy themselves.

Initially, Flagright focused on real-time transaction monitoring before the emergence of AI and LLMs changed the game—triggering the team to grow into a full-suite AML compliance platform. Fast forward to today, Flagright boasts over 50 customers across six continents, with a team of 35 employees.

Today, it provides a state-of-the-art AI-native ecosystem, including dynamic risk scoring, automated case management, real-time transaction monitoring, and AML screening. Its high-performance scenario builder ensures sub-second API response times, while advanced integrations with industry-leading data providers such as LSEG and Dow Jones enhance compliance capabilities.

With 99.99% uptime and real-time data processing in under 700ms, Flagright’s banking-grade reliability is unmatched. Customers report 93% fewer false positives, 87% less manual monitoring effort, and a drastic improvement in overall compliance operations performance — demonstrating a measurable impact on operational efficiency.

To accelerate its vision, Flagright has raised a $4.3 million seed round led by Frontline Ventures, with participation from notable angel investors such as Rubin Ritter (Ex-Co-CEO of Zalando), André Silva (Ex-Global Head of Expansion at Revolut), Phillip Chambers (CEO of Orbex), Ahmed Badr (COO of GoCardless), Teng Sherng Lim (Ex-CCO of Advance.AI), and Saqib Mirza (CEO of Sciopay). Existing investors, including Y Combinator, Pioneer Fund, and Moonfire Ventures, also doubled down in this round.

With this funding, Flagright plans to accelerate its growth and innovation efforts by developing new products and expanding its global presence.Flagright is also launching AI Forensics, a product family that automates compliance workflows for screening, monitoring, governance, and quality assurance. The company has already demonstrated exceptional results with AI Forensics for Screening, an AI agent that reduces false positives by 93% and decreases alert investigation time by 80%.

These specialized AI agents will be uniquely integrated into Flagright’s AML solution with a centralized high-performance data lake and optimized data pipelines, delivering superior risk detection with fewer false positives. This architecture will enable the AI agents to access, analyze, and correlate vast financial datasets in real-time, uncovering complex suspicious patterns while continuously improving through embedded feedback loops within compliance workflows. Unlike pure AI Agent solutions that lack deep data integration, this unique approach provides contextually-rich intelligence that adapts to emerging financial crime patterns faster, scales efficiently with transaction volume, and significantly reduces compliance team workload while maintaining comprehensive audit trails for regulatory requirements.

Beyond product innovation, Flagright is deepening its commitment to empowering startups on their compliance journey. The company will be launching the Flagright Startup Program, a program that aims to provide accessible and easily implementable AML compliance and risk management tools to empower fintech startups to scale securely and seamlessly from day one. This program opens the door for eligible startups to leverage Flagright’s core products, including transaction monitoring, AML screening, risk scoring, and case management, along with its latest AI-driven innovations—AI Forensics for Monitoring and AI Copilot. To make compliance effortless and accessible under the program, Flagright will offer an unbeatable startup-friendly pricing model: free access in the first year, a 50% discount in the second, and a smooth transition to standard pricing in the third. Through this program, fintech startups can focus on growth while staying ahead of regulatory challenges, without breaking the bank.

The company is also doubling down on its North American presence in New York and San Francisco, strengthening relationships with financial institutions in the region. Additionally, Flagright has recently established an EMEA headquarters in London, complementing its footprint in Berlin, Singapore, and Bangalore.

These expansions ensure around-the-clock support for customers across different time zones while further reinforcing Flagright’s role as a global leader in AI-driven AML compliance.

About Flagright

Flagright is an AI-native, no-code compliance platform redefining financial crime prevention. With real-time transaction monitoring, automated case management, dynamic risk scoring, AML screening, AI Forensics, and more, Flagright empowers teams to scale efficiently while reducing false positives and operational costs. Trusted by financial institutions globally, Flagright delivers cutting-edge AML solutions with speed, precision, and adaptability.