AI-native AML compliance platform Flagright has raised a $4.3 million Seed round to fund international expansion.
The raise was led by Frontline Ventures, with contributions from a series of notable angel investors, such as Rubin Ritter (ex-co-CEO of Zalando), André Silva (ex-global head of expansion at Revolut), Phillip Chambers (CEO of Orbex), Ahmed Badr (COO of GoCardless), Teng Sherng Lim (ex-CCO of Advance.AI), and Saqib Mirza (CEO of Sciopay). Existing investors, including Y Combinator, Pioneer Fund, and Moonfire Ventures, also doubled down in this round.
The Singapore-based firm provides an AI-native compliance operating system, including dynamic risk scoring, automated case management, real-time transaction monitoring, and AML screening.
Co-founder Baran Ozkan says: “We were really early-stage when the boom in AI came into effect, meaning we could implement AI-native solutions from the very start, something that more established companies running on legacy architecture have found challenging. It is true that bad actors in financial crime are finding new ways of using AI all the time, which is what makes the work Flagright is doing so important. This funding will allow us to further develop our AI agents that will allow financial companies to stay one step ahead.”
Ozkan says Flagright's 50 banking customers around the world report 90% fewer false positives, 87% less manual monitoring effort, and a sizeable improvement in overall compliance operations performance.
Will Prendergast, partner at Frontline Ventures, says: “At Frontline Ventures, we invest in companies that are emerging winners in their category and on an IPO path. During our research with financial institutions before Frontline’s initial investment in Flagright, we kept hearing how Flagright had outperformed other companies — we believe they will be the compliance platform category winner."
Beyond product innovation, Flagright is expanding globally, doubling down on its North American presence in New York and San Francisco. Additionally, Flagright has recently established an Emea headquarters in London, complementing its footprint in Berlin, Singapore, and Bangalore.