Flagright has secured new funding to expand its AI-powered financial crime compliance platform, advance explainable AI capabilities, and strengthen its presence in the US market.
Flagright, the AI operating system for financial crime compliance, has raised a $12.5 million Series A funding round led by Infinity Ventures, with participation from Sella Bank and continued backing from existing investors including Frontline and Y Combinator. The funding will support Flagright’s continued growth as it expands explainable AI capabilities across compliance operations and strengthens its presence in the United States market.
Financial institutions are facing growing pressure to manage increasing transaction volumes, evolving financial crime threats, and rising regulatory expectations, while AI is rapidly becoming part of everyday compliance operations. Yet much of the existing compliance infrastructure was not built for this environment. Many organisations still rely on rigid legacy systems or fragmented point solutions that create operational complexity and limit adaptability.
Flagright was built to address this challenge. The company provides a unified AI operating system for financial crime compliance that brings together transaction monitoring, watchlist screening, risk scoring, case management, AI forensics, investigations, and governance workflows within a single platform.
By combining enterprise-grade compliance infrastructure with explainable AI, Flagright enables compliance teams to improve alert investigations, optimise monitoring systems, strengthen decision-making, and enhance operational efficiency while maintaining transparency, auditability, and human oversight.
Baran Ozkan, co-founder and CEO of Flagright, said:
The financial crime compliance stack is being rebuilt, and Flagright is the company to define the operating system layer for this category. Regulated financial institutions need a system that gives them speed, control, explainability, and auditability in one place. This round helps us accelerate our position as the enterprise standard for financial crime compliance by expanding explainable AI use cases across compliance operations and increasing our US market presence.
Highlighting the role of explainable AI in modern compliance operations, Madhu Nadig, co-founder and CTO of Flagright, said financial institutions increasingly require integrated systems that bring together monitoring, screening, investigations, governance, and AI within a single environment.
We are building the system of choice for sophisticated institutions that need AI they can trust, audit, and operationalise at scale.
Today, Flagright serves more than 100 fintechs and banks across 30 countries. Its unified platform brings together transaction monitoring, watchlist screening, investigations, and governance in a single audit-ready system. Designed for modern compliance teams, it combines no-code controls, dynamic risk profiling, and explainable AI to support efficient, transparent, and governed compliance operations.
As the industry moves toward a more unified and intelligent compliance infrastructure, Flagright aims to help shape the next generation of compliance technology.
The new capital will support that effort by expanding AI capabilities across investigations, alert intelligence, rule optimisation, decision support, and audit-ready workflows, while growing its enterprise presence among banks, fintechs, credit unions, and other regulated financial institutions seeking to modernise legacy or fragmented compliance infrastructure.