ComplyStream, a new AI-native RegTech startup, has raised an oversubscribed pre-seed round led by Cornerstone VC and Ascension. The round also saw participation from key strategic angels, including investors from ClearBank, Monzo, Airwallex, Accel Starters, and Santander, as well as notable figures like Claire Valoti and Amir Nooriala. With this funding, ComplyStream is poised to disrupt the financial crime compliance market, which is expected to reach $26.8 billion by 2025.
Despite significant advances in financial crime detection technologies, many financial institutions still struggle with outdated systems that are costly and fragmented. A critical issue is the high false-positive rate — some institutions experience rates as high as 98%, leading to inefficiencies in compliance operations. This is where ComplyStream comes in, offering an AI-powered platform designed to tackle the 95% operational burden that comes after an alert is triggered.
Kartik Dabbiru, CEO of ComplyStream, explained: “While we’re not disclosing specific figures, we’ve raised enough capital to support the next phase of growth. We’re investing in product innovation, ecosystem integrations, and team expansion to address the core challenges of financial crime operations.”
AI-Driven Solutions for Financial Crime Operations
Founded by Kartik Dabbiru (ex-Wise, BVNK) and Sandi Samantaray (ex-Thredd, RBC, HSBC), ComplyStream was developed to overcome the frustrations they encountered while leading compliance at global fintechs. Dabbiru shared, “Across large institutions and fast-growing fintechs, we saw the same pattern: great detection tools but an operational mess once an alert was triggered. Analysts were overwhelmed with manual work, siloed data, and inefficient systems.”
That’s when ComplyStream identified a major gap in the financial crime compliance space: it wasn’t just about detection, but about managing the post-alert process. With AI-driven solutions, ComplyStream aims to eliminate the inefficiencies that follow a financial crime alert, streamlining investigations and reducing false positives.
ComplyStream is the first platform to address post-alert compliance at scale. The company is helping financial institutions modernize compliance operations by automating tasks such as KYC refresh and AI-powered alert investigation, which prioritize high-risk alerts and reduce false positives. Through a strategic partnership with Universal Partners, a UK-based cross-border FX provider, ComplyStream is already helping financial institutions improve their compliance efforts and accelerate investigations.
“We are an AI-native orchestration layer that enables financial institutions to triage, investigate, and resolve alerts more efficiently,” said Dabbiru. “Our platform integrates directly with existing systems, providing a seamless connection between transaction monitoring, case management, and customer communication.”
Tackling Competition in the RegTech Space
ComplyStream’s competition isn’t just other RegTech vendors — it’s the status quo of manual, outdated systems. Many institutions still rely on Excel, SharePoint, and disconnected workflows, while vendors like Featurespace and Feedzai focus primarily on detection.
Dabbiru believes ComplyStream’s AI-powered post-alert solutions stand out in the market. “We are purpose-built for post-alert operations, unlike traditional case management tools like NICE Actimize or Pega, which lack the flexibility and specialization required for modern financial crime operations.”
With its first official enterprise partner on board, ComplyStream is set to redefine how financial institutions handle compliance operations. The company plans to expand its global client base, enhance its AI capabilities, and continue to innovate within the RegTech space.
Looking to the future, Dabbiru outlined three key horizons for ComplyStream’s growth:
- Short-term: Expand its global presence while refining its AI-powered compliance workflows.
- Medium-term: Establish itself as the industry standard for financial crime operations across payment service providers and banks.
- Long-term: Develop a financial crime investigation data pipeline that streamlines processes across economic entities, turning compliance into a competitive advantage.
“This partnership with Universal Partners signals the beginning of a new era in financial crime risk management,” said Oliver Carson, CEO of Universal Partners. “With ComplyStream’s AI-powered technology, we can respond more efficiently and with greater precision.”
