Flagright has raised a $12.5m (£9.3m) Series A round to expand AI use cases across compliance operations and increase its US market presence.
Flagright is an AI operating system for financial crime compliance. Its unified, risk-based platform centralises transaction monitoring, watchlist screening, investigations and governance so financial institutions can run modern compliance programs on a single audit-ready system.
The startup says financial crime compliance is entering a platform shift. Across banking, payments, lending, brokerage, credit unions and other regulated sectors, Flagright says institutions are being asked to move faster, manage higher volumes, meet rising regulatory expectations, and respond to increasingly sophisticated financial crime.
At the same time, AI is moving from experimentation into operational reality. Many institutions are still forced to choose between legacy systems that are difficult to adapt and fragmented point solutions that create more operational complexity than they remove.
Flagright’s platform combines compliance modules, enterprise grade workflows and explainable AI capabilities that help financial crime teams improve recommendations, system optimisation, and alert investigations and decision support while keeping control, transparency and human oversight at the centre.
The Series A was led by Infinity Ventures, with participation from Sella Direct Ventures and continued backing from existing investors including Frontline and Y Combinator.
“Regulated financial institutions need a system that gives them speed, control, explainability and auditability in one place,” says Baran Ozkan, co-founder and CEO at Flagright.
“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, while we continue serving sophisticated clients with the reliability and depth they expect from a mission critical software.”
