Regulatory technology startup Zango AI secured $4.8 million in a funding round spearheaded by Nexus Venture Partners. The round also included early supporter South Park Commons, along with angel investors like Richard Davies, CEO of Allica Bank, and Alan Morgan, senior partner in financial services at McKinsey, among others.

The new funds will be utilized to expand the company's teams in Bengaluru and London, as well as to develop additional product modules for AI-driven governance risk and compliance solutions.

Zango is broadening its range of offerings into additional financial services sectors, such as insurance and asset management.

Established in 2024 by Ritesh Singhania and Shashank Agarwal, Zango seeks to transform the way financial institutions handle regulatory obligations. It employs regulation-specific large language models (LLMs) to automate functions like horizon scanning, gap analysis, and audit preparation, which have typically been managed via manual assessments and spreadsheet-intensive processes.

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The startup asserts that its AI agents can understand evolving regulations and embed compliance assessments directly into the routine operations of businesses.

The tools of the company are presently utilized by Novobanco in Portugal and fintech firms like Monzo and Juni.

"Our AI agents work alongside humans to guarantee complete accuracy." Peace of mind arises not from a tool; it stems from an outcome. “That’s how we succeed over consultants — they don’t simply market software, and neither do we,” remarked Singhania.

Singhania earlier established ClearGlass, a pension compliance platform, and held the position of technology head at Simplitium, a financial services technology provider. Agarwal co-founded Third Watch, a startup focused on fraud detection, which was bought by the digital payments firm Razorpay. He also directed trust and compliance engineering at the fintech company PhonePe, which is preparing for an IPO.

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Anand Datta, partner at Nexus Venture Partners says, "The global regulatory landscape is ripe for disruption. 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.”