RegTech startup Zango AI has successfully raised $4.8 million in funding, led by Nexus Venture Partners, to enhance its operations in Bengaluru and London while developing AI-native compliance tools.

The funding round attracted notable investors, including Richard Davies, CEO of Allica Bank, and Alan Morgan, former head of Financial Services at McKinsey (EMEA), alongside early backer South Park Commons.

This investment comes at a time when Indian SaaS startups are gaining traction, having raised over $2.1 billion in 2024, marking a 31% increase year-on-year.

Zango AI plans to utilize the new capital to expand its teams and develop additional product modules for governance, risk, and compliance solutions.

The company aims to simplify the complex regulatory landscape, transforming it into an intuitive list of compliance requirements to enable faster product launches and market expansions.

Zango addresses significant challenges in financial services by simplifying the complexity of regulations, allowing businesses to navigate compliance more effectively.

By employing trained AI agents to interpret complex regulations, Zango provides step-by-step compliance guidance for financial organizations.

Zango's innovative solution includes regulation-aware AI agents that continuously track updates and identify compliance gaps in real time, significantly improving efficiency.

The company's goal is to relieve compliance teams from routine tasks, allowing them to focus on strategic initiatives and facilitating quicker product launches.

Zango is already being utilized by major banks like Novobanco and is gaining traction among neo banks such as Monzo and Juni within the EU and UK markets.

Zango's commitment to security and scalability is underscored by its certifications as SOC 2 Type II and ISO 27001 compliant.

Co-founders Ritesh Singhania and Shashank Agarwal bring extensive experience in regulatory technology, having previously founded successful startups in the field.