Flagright Raises $12.5M in Series A Funding Led by Infinity Ventures

The round also saw participation from Sella Direct Ventures, Frontline, and Y Combinator.

The company plans to use the funds to strengthen its position by expanding explainable AI use cases in compliance operations and growing its presence in the U.S. market.

Financial crime compliance is going through a major shift. Across banking, payments, lending, brokerage, credit unions, and other regulated industries, institutions are under pressure to move faster, handle more transactions, meet stricter regulations, and deal with increasingly complex financial crime. At the same time, AI is shifting from experimentation to real, day-to-day use in operations.

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Many institutions still have to choose between outdated legacy systems that are hard to change and scattered point solutions that add more complexity instead of solving it. Flagright is an AI operating system for financial crime compliance designed to remove this tradeoff.

Flagright combines key financial crime compliance functions into one AI operating system. This includes transaction monitoring, watchlist screening, risk scoring, case management, AI forensics, and governance workflows.

The platform brings together enterprise-grade workflows, compliance tools, and explainable AI to help financial crime teams improve alerts, investigations, system optimization, and decision-making—while maintaining full control, transparency, and human oversight.

This includes using AI in areas like investigations, alert analysis, rule optimization, decision support, and audit-ready workflows. It will also help Flagright expand its reach across banks, fintechs, credit unions, and other regulated financial institutions that are looking to replace outdated or fragmented compliance systems.

Madhu Nadig, co-founder and CTO of Flagright, said, "AI in compliance only matters if it is explainable, governable, and useful in real operations. The market does not need another black box tool. It needs an operating system that brings monitoring, screening, investigations, governance and explainable AI together in one place. We are building the system of choice for sophisticated institutions that need AI they can trust, audit and operationalize at scale."

Jeremy Jonker, co-founder and managing partner at Infinity Ventures, said: "At Infinity Ventures, we back founders building best-in-class modern financial infrastructure. Flagright stood out because sophisticated financial institutions are increasingly choosing the platform for its combination of enterprise readiness, explainable AI, operational flexibility, and product maturity. We believe Flagright is defining the AI operating system layer for financial crime compliance, and we expect the company to become the market leader in this category over the next five years."

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."

About Flagright

Founded in 2021 by Baran Ozkan and Madhu Nadig, Flagright is an AI operating system for financial crime compliance. More than 100 fintechs and banks use it across 30+ countries. The platform brings together transaction monitoring, watchlist screening, investigations, and governance into one unified, risk-based system. This helps financial institutions manage compliance in a modern, audit-ready way and go live in as little as two weeks.

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