Flagright, a startup building software to help financial institutions combat money laundering and financial crime, has raised a $12.5m Series A round as demand grows for AI-powered compliance tools.
Founded by CEO Baran Ozkan and CTO Madhu G. Nadig in Berlin, Flagright sells software used by banks, fintechs and other regulated financial institutions to monitor transactions, screen customers against sanctions lists and manage investigations into suspicious activity. The company says it operates in more than 35 countries worldwide.
The round was led by US VC Infinity Ventures, with participation from Italy’s Sella Direct Ventures and existing investors including Frontline and Y Combinator.
The round comes as financial institutions grapple with increasingly sophisticated fraud and tighter regulatory scrutiny, while also facing pressure to process growing transaction volumes more efficiently. At the same time, AI tools are moving from experimentation into day-to-day operations.
Flagright says that many compliance teams remain stuck between expensive legacy systems and a patchwork of specialist tools that create additional operational complexity.
“The financial crime compliance stack is being rebuilt,” said Ozkan. “Regulated financial institutions need a system that gives them speed, control, explainability and auditability in one place.”
The company’s platform bundles together transaction monitoring, watchlist screening, risk scoring, case management and AI-powered investigation tools into a single system designed for compliance teams.
The fresh capital will be used to expand Flagright's AI capabilities and grow its presence in the US market, particularly among banks, fintechs and credit unions looking to replace older compliance infrastructure.
