[Funding alert] RuleZero raises Rs 10 Cr in Seed round led by Zerodha’s Rainmatter Capital

Rulezero, a legal/fintech platform, has raised Rs 10 crore in seed funding. The round was led by Zerodha-backed fund and incubator Rainmatter Capital, and also saw participation from Kris Gopalakrishnan, IndusLaw, and Reddy Futures, amongst others.

The startup said the funding will be used to enhance its technology and increase consumer deployments.

Srinivas Katta, one of the Founders of RuleZero, said,

“Manual processes, limited number of skilled professionals, and the absence of a single source of truth, have resulted in private companies suffering from compliance issues, limited liquidity, high financing costs, and delays. RuleZero is solving this problem by building an intelligent platform that enables stakeholder participation and capital flow in a transparent, efficient, and compliant manner.”

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Founded in 2019 by Satish Mugulavalli and Srinivas Katta, the startup is incubated at IndusLaw and has developed the “hissa” platform. It is also a marketplace connecting to other legal/fintech products and service providers.

The statement said RuleZero aims to manage ownership data of the company, automate share issuance processes and ESOP creation and management, and provide mechanisms to track and certify cap tables and manage transactions.

Nithin Kamath, Founder and CEO at Zerodha, said,

“At Rainmatter, we are constantly looking out for innovative tech companies that are working on enabling and encouraging financial transactions. Rulezero is a platform that automates various manual tasks and paperwork involved in private investments and facilitates such transactions.”

The statement added RuleZero will also venture into enabling and providing liquidity and enabling secondary transactions of unlisted securities in a compliant manner.

Kris Gopalakrishnan, Founder, Infosys, said:

"We are excited to back RuleZero as they are disrupting the manual processes in transactions. By automating and standardising compliance, data flows and contracts between founders, investors and other parties, they will speed up the innovation cycle; freeing up the founding team's time from administration, data checks and negotiation to run their business.”