AI-native AML compliance platform Flagright has successfully raised $4.3 million in a Seed funding round aimed at supporting its international growth.
The funding round was led by Frontline Ventures, with participation from several prominent angel investors, including Rubin Ritter (former co-CEO of Zalando), André Silva (former global head of expansion at Revolut), Phillip Chambers (CEO of Orbex), Ahmed Badr (COO of GoCardless), Teng Sherng Lim (former CCO of Advance.AI), and Saqib Mirza (CEO of Sciopay). Existing investors such as Y Combinator, Pioneer Fund, and Moonfire Ventures also increased their stakes in this round.
Based in Singapore, Flagright offers an AI-native compliance operating system that features dynamic risk scoring, automated case management, real-time transaction monitoring, and AML screening.
Co-founder Baran Ozkan shared: “We were at an early stage when the AI boom began, which allowed us to implement AI-native solutions from the outset. This has been challenging for more established companies reliant on legacy systems. Bad actors in financial crime continually adapt their tactics using AI, making our work at Flagright vital. This funding will help us enhance our AI agents, enabling financial companies to stay ahead of these threats.”
According to Ozkan, Flagright’s 50 banking clients worldwide have experienced a 90% reduction in false positives, an 87% decrease in manual monitoring efforts, and significant improvements in overall compliance operations.
Will Prendergast, a partner at Frontline Ventures, commented: “At Frontline Ventures, we focus on investing in companies that are poised to become leaders in their sectors and are on a path toward IPO. In our discussions with financial institutions prior to our initial investment in Flagright, we consistently heard reports of their superior performance compared to competitors, and we believe they will emerge as the top compliance platform in their category.”
In addition to product innovation, Flagright is focusing on global expansion, enhancing its presence in North America with offices in New York and San Francisco. The company has also established a headquarters in London, complementing its existing locations in Berlin, Singapore, and Bangalore.