Flagright raises $12.5M Series A to define the AI operating system for financial crime compliance
June 17, 2026
Flagright, the AI operating system for financial crime compliance, has raised $12.5 million in a Series A round led by Infinity Ventures, with participation from Sella Direct Ventures and continued backing from existing investors Frontline Ventures and Y Combinator.
Regulated financial institutions are under mounting pressure from multiple directions: transaction volumes are rising, regulatory expectations are tightening, and financial criminals are deploying increasingly sophisticated methods. Much of the compliance infrastructure built to address these threats predates real-time payments rails and was never designed for the operational pace now required. Banks and fintechs are typically forced to choose between rigid legacy systems that resist customisation and fragmented point solutions that multiply complexity rather than reduce it. Flagright was founded in 2022 by CEO Baran Ozkan and CTO Madhu Nadig to end that tradeoff. Ozkan had spent 15 months as director of product at a European financial institution searching for a transaction monitoring platform that met enterprise-grade requirements — and concluded it did not exist.
The platform brings together transaction monitoring, watchlist screening, dynamic risk scoring, case management, AI forensics, and governance workflows in a single system. Compliance teams can configure and refine controls without writing code, using a no-code scenario builder and simulation tools. An explainable AI layer supports alert investigations, rule optimisation, and decision support while keeping human oversight central — a design requirement in regulated environments where every decision must be auditable and defensible across jurisdictions. Flagright deploys in as little as two weeks.
The company serves more than 100 banks and fintechs across 30 countries. Clients switching from fragmented tooling report up to 93% fewer false positive alerts and 80% lower compliance costs. Prior funding includes a $2.8M pre-seed round in September 2023 and a $4.3M seed round in April 2025 led by Frontline Ventures. The Series A is the company's largest raise to date and brings total funding to approximately $19.6M.
The new capital will be used to extend explainable AI capabilities across investigations, alert intelligence, rule optimisation, decision support, and audit-ready workflows, and to deepen Flagright's presence in the US market — specifically targeting banks, credit unions, and regulated fintechs looking to replace legacy compliance infrastructure. Infinity Ventures, the lead investor, is a San Francisco-based fund whose partners previously led strategic investments at PayPal, including deals involving Plaid, Venmo, and Braintree. Jeremy Jonker, founding partner at Infinity Ventures, said the firm expects Flagright to become the market leader in financial crime compliance within five years.
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