Bangalore based Sprinto, a compliance automation platform for software-as-a-service (SaaS) companies, has secured $10 million in Series A funding led by Elevation Capitalwith participation from Accel and Blume Ventures. The company announced the new round of funding today ( Wednesday)
The startup in a statement stated the funding will be deployed for growing its workforce across strategic functions and R&D to enable long-term growth. By this Quarter end, Sprinto will also open its first North American operations.
Sprinto expects a solid growth in compliance automation services
“Sprinto solves a critical business need in a growing market. It has created a world-class product which is already emerging as the compliance automation platform of choice for SaaS companies and generating tremendous customer acclaim,” said Deepak Gaur, Partner, Elevation Capital.
Publicly launched in mid 2021, Sprinto helps SaaS companies obtain compliances, such as SOC 2, ISO27001, GDPR, HIPAA etc., in a quick and hassle-free manner.
Obtaining these compliances helps Sprinto customers close enterprise deals and pass vendor security assessments easily. The startup was co-founded by Girish Redekar and Raghuveer Kancherla, who have been colleagues for 15 years.
Developed by the American Institute of Certified Public Accountants (AICPA), SOC 2 (Systems and Organisations Controls 2) is a set of compliance requirements for companies, especially service organisations, which use cloud-based storage for their customers’ data. It is based on five core trust services criteria of security, availability, processing integrity, confidentiality, and privacy. SOC 2 audits have become essential in regulatory oversight, vendor management programs, internal governance, and risk management.
“As compliance with these standards, including SOC 2, is becoming a critical business need, most companies must rely on infosec consultants and auditors to get the necessary certifications,” said Sprinto Co-founder Girish Redekar.
“With a consultant, companies would take around 3-4 months to be ready for SOC 2 assessment. Using Sprinto’s compliance automation platform, companies can complete the SOC 2 readiness assessment in just days. This levels the playing field, helping smaller companies lacking the resources of larger firms,” Girish added.
As enterprise SaaS continues to grow exponentially, businesses are increasingly relying on compliances like SOC 2 to get assurance that their SaaS vendors keep their data safe. And SaaS vendors need SOC 2 compliance to close high-ticket deals.
Currently, obtaining and maintaining SOC 2 compliance takes 300+ hours of work each year, according to Sprinto.
Earlier, in January 2020, the company had raised $1.5 million in seed funding from Blume Ventures.
