Flagright, an AI-native anti-money laundering (AML) compliance platform, has secured US$4.3 million in seed funding, according to a report by Financial IT.
The round was led by Frontline Ventures, with participation from angel investors Rubin Ritter (former Co-CEO of Zalando), André Silva (former Global Head of Expansion at Revolut), Phillip Chambers (CEO of Orbex), Ahmed Badr (COO of GoCardless), Teng Sherng Lim (former CCO of Advance.AI), and Saqib Mirza (CEO of Sciopay).
Existing investors Y Combinator, Pioneer Fund, and Moonfire Ventures also took part in the round.
Founded in 2022 by Baran Ozkan and Madhu Nadig, Flagright began as a real-time transaction monitoring platform and has since evolved into a full-suite AML compliance system.
Its offering now includes dynamic risk scoring, automated case management, AML screening, and real-time monitoring with near-perfect uptime.
Clients have reported a 90% reduction in false positives and a significant cut in manual compliance workload.
Its latest solution, AI Forensics for Screening, reportedly reduces operational costs by 80%, cuts false positives by 93%, and lowers human error by 27%.
The new funds will support the development of a full product family under the AI Forensics umbrella, aimed at automating screening, monitoring, governance, and quality assurance tasks.
With over 50 customers across six continents, Flagright is now expanding its international presence with the new funding.
The company is bolstering operations in New York and San Francisco while establishing a new EMEA headquarters in London to complement its existing offices in Berlin, Singapore, and Bangalore.
Featured image credit: Edited from Freepik
