In a bold move that signals the rising prominence of generative AI in India’s financial services sector, Neurofin, a Bengaluru-based fintech infrastructure startup, has secured $1.6 million in seed funding. The round was led by UNLEASH Capital, with participation from Pentathlon Ventures, Fintech Yatra, and Antler India.
This infusion of capital is set to accelerate Neurofin’s mission: to transform how financial institutions manage compliance, documentation, and operations using advanced GenAI-powered solutions.
A New Layer in the Fintech Stack
Founded in 2023 by Vijay Makhijani, a seasoned financial services professional with experience at HSBC, Citi, and digital lending platform Rupifi, Neurofin was conceived to address the deep operational inefficiencies that plague India’s BFSI (banking, financial services, and insurance) sector.
“At Neurofin, we are building foundational infrastructure to help financial institutions automate and scale their internal processes using GenAI, while staying compliant with India’s strict regulatory environment,” said Makhijani in a statement following the funding announcement.
The startup’s core offering is a modular AI platform that automates time-consuming processes such as credit evaluation, customer onboarding, compliance checks, and policy documentation—without compromising on regulatory rigour.
Enterprise Traction and Real-World Use
Unlike many early-stage AI ventures still in pilot stages, Neurofin is already working with high-profile clients including Tata Capital and Jio Payments Bank. These partnerships are helping it demonstrate tangible gains: reducing loan processing time by up to 40%, minimizing human error, and offering auditable compliance pathways—critical in the post-RBI tightening era.
The platform uses a blend of large language models and structured data to create secure, real-time insights for underwriting and audit workflows. According to internal estimates, Neurofin’s clients process over ₹500 crore in monthly loan volume using its infrastructure.
Investor Confidence in AI-Driven Infra
The lead investor, UNLEASH Capital, has been focusing its thesis on next-generation enterprise tech built in India. Speaking on the round, UNLEASH’s Managing Partner said:
“India’s BFSI sector is vast but operates on legacy rails. Neurofin’s product-first, compliance-native approach is exactly the kind of innovation the ecosystem needs. We believe this team is building foundational infrastructure for the next decade of financial services.”
The deal also attracted Pentathlon Ventures, a B2B-focused seed fund, and Antler India, known for backing high-tech infrastructure startups. Fintech Yatra, a strategic collective supporting fintech founders, also joined the round, further validating Neurofin’s relevance in the sector.
Market Context: BFSI in a Compliance Age
India’s financial sector has seen a major regulatory overhaul over the last two years. From the Reserve Bank of India’s tightened rules on digital lending to increased scrutiny on data privacy and KYC norms, institutions are now expected to digitize with control.
In this climate, platforms like Neurofin offer a compelling solution: tech-enabled governance, cost reduction, and speed—all while staying compliant. The broader fintech ecosystem, once heavily consumer-facing, is now warming up to infra-first players that serve enterprise and back-office use cases.
What’s Next for Neurofin
With fresh capital in hand, Neurofin plans to:
- Expand its tech team to deepen its AI models and integrations with banks, NBFCs, and insurance players.
- Roll out new modules for fraud detection, AI-driven customer communication, and real-time portfolio health monitoring.
- Explore regulatory sandboxes in India and Southeast Asia for future international expansion.
There’s also speculation around future partnerships with government-backed platforms like Account Aggregator and Public Credit Registry, which could give Neurofin additional data insights to power its models.
Final Word
In an industry that values precision, speed, and security, Neurofin’s GenAI-first approach is a refreshing shift from shiny fintech front-ends to the robust infrastructure behind them. As India’s fintech sector matures, it will increasingly rely on players like Neurofin to ensure it grows responsibly, compliantly, and intelligently.
This seed round may just be the beginning—for Neurofin, and for a new class of AI-powered infrastructure startups building the future of Indian finance.
