Exclusive: ComplyStream emerged from stealth to tackle the 95% problem in compliance operations with Universal Partners deal

The financial crime and compliance technology market is expected to reach $26.8 billion by the end of 2025. With increasing regulatory pressures, many financial institutions still rely on outdated systems that are expensive, manual, and fragmented.

Some institutions face false positive rates as high as 98%, creating demand for innovative, AI-driven solutions that enhance detection and simplify investigations. ComplyStream addresses this gap with Kartik Dabbiru, CEO of ComplyStream, capturing one of the most critical opportunities in enterprise fintech.Today, ComplyStream, a new AI-native RegTech startup, has emerged from stealth with an oversubscribed pre-seed round led by Cornerstone VC and Ascension.



Strategic angels from ClearBank, Monzo, Airwallex, Accel Starters, and Santander have joined the round, including notable investors Claire Valoti and Amir Nooriala. The company launches with strong market validation, announcing its first enterprise partnership with Universal Partners, a leading UK-based cross-border FX provider.Kartik Dabbiru, CEO of ComplyStream, told TFN exclusively: “While we’re not publicly disclosing specific figures, we’ve raised sufficient capital to execute the next phase of our growth.

We’re investing in three core areas: product innovation (deepening our AI-native capabilities with richer regulatory intelligence and more automated workflows), ecosystem integrations (expanding our ability to connect seamlessly with existing financial systems and compliance tools), and team growth (hiring specialists in financial crime ops and AI to support our growing customer base and accelerate execution).Everything we do is focused on solving 95% of the problem that begins after an alert is triggered.”AI-driven solutions for financial crime operationsFounded by Kartik Dabbiru (ex-Wise, BVNK) and Sandi Samantaray (ex-Thredd, RBC, HSBC), ComplyStream was built from scratch in six months to address the challenges they witnessed firsthand while leading compliance at global fintechs.

Dabbiru shared: “ComplyStream was born out of firsthand frustration. Across both large institutions and fast-scaling fintechs, we observed a consistent pattern: powerful detection tools, but an operational mess once an alert was triggered. Analysts are drowning in manual work.

Siloed data. No cohesive system to investigate or resolve efficiently.That’s when we saw the gap — not in detection, but in what happens after.

It wasn’t just a pain point, it was a market blind spot. With AI finally capable of driving real transformation, we knew we could build something purpose-built to solve the 95% problem in financial crime operations.”This isn’t just another RegTech integration.

ComplyStream is building the first compliance platform for a post-alert world, where financial institutions struggle with false positives, siloed systems, and costly manual investigations. While most vendors focus on detecting financial crime, ComplyStream tackles the 95 %+ of operational burden that follows.Setting new standards in post-alert compliance automationThrough this strategic partnership, Universal Partners will deploy ComplyStream’s platform to modernise how its compliance teams operate across KYC, AML, and investigations.

Key outcomes include: KYC refresh automation, which reduces manual reviews and accelerates onboarding; AI-powered alert investigation, prioritising high-risk alerts and reducing false positives; and unified compliance data, connecting fragmented systems into a single, intelligent hub.Speaking about technology, Dabbiru noted: “We’re an AI-native orchestration layer that helps financial institutions triage, investigate, and resolve alerts faster and with less friction. Our system understands compliance nuances and automates the manual steps that slow teams down — whether it’s gathering data, coordinating RFIs, or logging decisions.

Unlike point solutions, we integrate directly into existing systems, becoming the connective tissue between transaction monitoring, case management, and customer communication channels. That’s how we help teams scale without growing headcount.”Speaking about competition, Dabbiru noted: “Our biggest competitor is the status quo: manual processes built on Excel, SharePoint, and disconnected workflows.

On the vendor side, many players focus on detection: think Featurespace, Feedzai, ComplyAdvantage. In the post-alert space, we see legacy case management tools like NICE Actimize or Pega, but they often lack the specialisation and flexibility required for modern financial crime ops.ComplyStream is different.

We’re purpose-built for post-alert operations with AI at the core. Our strength lies in unifying data, automating RFIs, and accelerating investigations, all while fitting into existing infrastructure. That’s why institutions come to us when they’re ready to move from manual to modern.

”What’s next for ComplyStream?With this backing and its first official enterprise partner on board, ComplyStream is well-positioned to lead the next wave of intelligent compliance, enabling financial institutions to move faster, scale smarter, and reduce risk at every step.“The future of FinCrime operations isn’t just about reacting, it’s about staying ahead,” said Oliver Carson, CEO of Universal Partners. “ComplyStream’s AI-powered technology enables our compliance teams to respond faster and with more precision.

This partnership sets a new benchmark for financial crime risk management.”“Everyone talks about detection, but the real cost and complexity in compliance lies in what happens after an alert,” said Dabbiru. “We’re building the first AI-native platform designed to eliminate that friction.

This partnership with Universal Partners is just the beginning and a strong signal of how ready the market is for change.”He concluded: “Our roadmap for the next 3–5 years is structured around three key horizons. In the near term, we are focused on expanding our global client base while enhancing our core AI capabilities, particularly by developing more specialised compliance workflows.

In the medium term, our goal is to establish ourselves as the industry standard for financial crime operations among payment service providers and banks. We plan to offer a comprehensive suite of AI-powered tools that effectively address the entire post-event workflow.Looking to the long term, we envision redefining how financial institutions manage risk and operations more broadly.

We see significant opportunities to apply our orchestration approach to all back-office operations while developing a financial crime investigations data pipeline across a network of economic entities to streamline processes. Ultimately, we aim to transform operations from a cost centre into a competitive advantage for our clients, enabling safer and more efficient financial services worldwide.”The post Exclusive: ComplyStream emerged from stealth to tackle the 95% problem in compliance operations with Universal Partners deal appeared first on Tech Funding News.

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