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Scrut Automation raises $10M from Lightspeed, MassMutual Ventures, Endiya Partners

The SaaS platform helps companies consolidate their compliance and risk management processes while contextualising risks, reducing duplication of effort, and automating control monitoring.

Scrut Automation raises $10M from Lightspeed, MassMutual Ventures, Endiya Partners

Tuesday April 02, 2024 , 2 min Read

SaaS startup Scrut Automation, a governance, regulation and compliance management platform, has secured $10 million in growth capital from existing investors Lightspeed, MassMutual Ventures, and Endiya Partners.

Scrut will use the funds for platform enhancement, integrating generative AI for risk and compliance tasks, and expanding into the North American and European markets. The company also expects to double its sales over the next two months.

"We've been really prudent about how we spent our money so far; we've maintained top-quartile capital efficiency. So, we have a lot of money left in the bank still from the previous raises," Aayush Ghosh Choudhury, Co-founder and CEO of Scrut Automation, told YourStory.

"Now most of the new corpus would be used towards R&D and accelerating a US go-to-market [strategy]. We built a bunch of very interesting use cases focused on AI that we've been piloting for the last couple of quarters, and they're beginning to come to fruition. We should be able to commercialise them soon." Choudhury added.

The SaaS platform helps companies consolidate their compliance and risk management processes while contextualising risks, reducing duplication of effort, and automating control monitoring. The company especially focuses on small- and mid-market companies which typically cannot afford specialised consultants but are required to follow compliances, Choudhury said.

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Scrut's platform streamlines compliance processes for sectors including healthcare and financial services. Its deep automation capabilities cover 70% of controls, providing near-real-time risk visibility and reducing manual efforts, the company said in a statement.

It plans to use its knowledge base and expertise to develop AI tools to help small- and mid-market companies commit to good governance, regulation and compliance (GRC) practices, Choudhury said.

"Scrut's user-friendly and market-leading platform reduces this burden for security and GRC teams," said Dev Khare, Partner at Lightspeed.

With the latest round of funding, the company has raised $20.5 million in total. Since inception, it has grown its team to 120 people, with a presence in India, Southeast Asia, and the United States.

Before founding Scrut Automation, co-founders Aayush Ghosh Choudhury and Jayesh Gadewar built a procurement platform but struggled with GRC mandates. Along with their friend and compliance expert Kush Kaushik, they started Scrut Automation in 2021.


Edited by Kanishk Singh