Blume Ventures-Backed Zivy Pivots To Fintech Compliance Amid Rise Of AI Agents

Amid intensifying competition in the agentic AI space, Blume Ventures-backed AI startup Zivy has pivoted its business model and corporate identity from an messaging and notification filtering agentic AI platform to fintech compliance SaaS.

“It’s been a while since you last used Zivy, but we wanted to reach out with a quick update. Zivy is shutting down on March 31, 2026. After that date, you will no longer have access to Zivy,” cofounders Vivek Karna & Prashant VY said in a mail sent out to Zivy users.

In conversation with Inc42, cofounder and CEO Vivek Karna said that the decision to wind down Zivy’s operations came amid a tepid demand for its product.

Founded in 2023, Zivy offered an AI copilot that plugged into messaging apps like Slack and filtered through notifications and messages received by busy working professionals to highlight the most relevant ones based on context and personalisation.

In September 2024, Zivy had raised $1.2 Mn in a pre-seed funding round led by Blume Ventures, along with participation from Paradigm Shift Capital, iSeed, Everywhere Ventures, Indian Silicon Valley and Marsshot Ventures. Other investors like Razorpay’s cofounders Harshil Mathur and Shashank Kumar, CRED’s Kunal Shah, among others were also on the cap table of Zivy.

The founders decided to sunset the platform as new user acquisition became tough amid rising popularity for new agentic AI platforms like Anthropic’s Claude, which offers higher customisation for building personal assistants, Karna told Inc42.

He said that productivity ceased to be a differentiated offering in the last couple of years, especially as both new companies and big tech firms like Microsoft and Google started to flood the space with their own AI offerings.

“We started when ChatGPT was just becoming popular and personalised services to consumers were still nascent. But with the rise of Claude and other such agentic AI tools, acquiring new users became tough even as older users continued to prefer our platform,” he said.

According to Karna, the decision to shut down the platform was finalised last year after only about 10% of the roughly 250 organisations and 1,000 individuals who had signed up converted into paying users.

The founders have now pivoted to spin Zivy into Zoven, a compliance focused AI platform that helps banks and fintech firms with fraud detection.

Zoven will retain Zivy’s parent entity and its cap table. As per Karna, the Bengaluru-based startup still has a bulk of the capital raised in September 2024 and hence will not be looking to raise further funding for the new venture for the time being.

While the new platform hasn’t been launched yet, initial conversations with fintech firms are already underway, with a focus on companies that acquire merchants and require rigorous background risk checks for onboarding, anti-money laundering and KYC compliance. An official public launch of the platform is expected to take place in the first quarter of FY27.

Zoven will target the Indian market as global operations require overseas teams and constant travel which can add to expenses and efforts.

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