Scrut Automation, a risk-focused compliance automation platform, announced it has raised $10 million in growth capital for platform enrichment, integrating generative AI for risk and compliance tasks, and foray into the North American and European markets.
Aayush Ghosh Choudhury, Co-founder and CEO of Scrut Automation stated. “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.” The SaaS startup aims to double its sales over the next two months.
“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.
Scrut Automation targets mid-market companies to accomplish growth targets
The SaaS platform enables industry to 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.
Scrut Automation‘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 leverage 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 capital infusion, the firm has totalled its funding to $20.5 million. Since inception, it has grown its team to 120 people, with a presence in India, Southeast Asia, and the United States.
Co-founders Aayush Ghosh Choudhury and Jayesh Gadewar built a procurement platform but struggled with GRC mandates earlier to establishing Scrut Automation. They founded Scrut Automation in 2021 along with their friend and compliance expert Kush Kaushik.
The latest round of funding was raised from existing investors Lightspeed, MassMutual Ventures, and Endiya Partners.
