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Zango AI Emerges from Stealth with $4.8 Million Seed Round, Led by Nexus Venture Partners, to Revolutionize RegTech with AI

Zango AI Emerges from Stealth with $4.8 Million Seed Round, Led by Nexus Venture Partners, to Revolutionize RegTech with AI

RegTech startup Zango AI emerged from stealth, securing $4.8M in seed funding led by Nexus Venture Partners. Founded by Ritesh Singhania and Shashank Agarwal, Zango AI uses regulation-specific LLMs to automate financial compliance for banks and fintechs, aiming to revolutionize GRC with its AI-native platform and human-in-the-loop approach.

Zango AI, a promising RegTech (Regulatory Technology) startup, has officially emerged from stealth mode, announcing a significant $4.8 million seed funding round. The investment was led by the prominent global venture capital firm, Nexus Venture Partners, with participation from early backer South Park Commons and a cohort of notable angel investors including Richard Davies (CEO of Allica Bank) and Alan Morgan (Senior Partner, Financial Services at McKinsey). This fresh capital infusion is set to accelerate Zango AI's mission to transform financial compliance systems through its innovative AI-native solutions.

Founded in 2024 by serial entrepreneurs Ritesh Singhania and Shashank Agarwal, Zango AI aims to modernize how financial institutions navigate the increasingly complex regulatory landscape. The startup leverages regulation-specific Large Language Models (LLMs) to create "AI agents" that automate traditionally manual and spreadsheet-heavy compliance tasks. These tasks include crucial functions like horizon scanning (tracking regulatory updates), gap analysis (identifying discrepancies between regulations and internal policies), and audit preparation.

The $4.8 million raised will be strategically deployed to scale up Zango AI's teams in both London and Bengaluru, tapping into the deep talent pools in both global financial hubs and AI innovation centers. Furthermore, the funding will support the development of additional product modules for its AI-native Governance, Risk, and Compliance (GRC) suite. Zango AI also plans to expand its product suite into other financial services verticals, including insurance and asset management, building on its initial success in the banking sector.

Ritesh Singhania, Co-founder of Zango AI, emphasized the company's unique approach, stating, "Our AI agents are paired with humans in the loop to ensure 100% accuracy. Peace of mind doesn't come from a tool; it comes from a result. That's why we win against consultants – because they don't just sell software, and neither do we.” This "human-in-the-loop" methodology is critical in the high-stakes world of regulatory compliance, where even minor inaccuracies can lead to significant penalties.

Shashank Agarwal, Co-founder, added to the vision, drawing on his experience in fraud detection and trust engineering. Both founders bring a wealth of relevant experience: Singhania previously founded ClearGlass, a pension compliance platform, while Agarwal co-founded Third Watch, an AI-based fraud detection startup acquired by Razorpay. He also led trust and compliance engineering at PhonePe.

Anand Datta, Partner at Nexus Venture Partners, expressed strong conviction in Zango AI's potential. "The global regulatory landscape is ripe for disruption," Datta commented. "Ritesh and Shashank, with their firsthand, proven expertise, developed Zango's first-principles approach: uniquely marrying cutting-edge AI with human compliance expertise. Their AI-led solution is already augmenting the compliance team and increasing efficiency at global financial institutions.”

Zango AI's cloud-native platform is designed to provide real-time regulatory intelligence, transforming the arduous process of staying compliant into an intuitive, query-based system. The company already boasts a notable clientele, including Portugal's Novobanco and leading fintech companies like Monzo and Juni, demonstrating the practical application and effectiveness of its solutions in real-world scenarios. This funding round marks a significant step for Zango AI as it aims to become a frontrunner in the global RegTech market, making compliance simpler, faster, and more accurate for financial institutions worldwide.

Sarfraz Khan
Sarfraz Khan

I am an entrepreneur, marketer, and mentor with a certification in entrepreneurship from IIT Delhi, one of the most prestigious institutions in India. I have a passion for connecting businesses with their ideal customers, solving real-world problems, and inspiring the next generation of founders.I founded and lead DevoByte, a digital marketing agency that provides a range of services, from SEO a

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