SaaS startup Scrut Automation raises $7.5 million in funding from MassMutual
- ByStartupStory | February 21, 2023
Scrut Automation, a SaaS startup focused on governance, risk, and compliance (GRC), has raised $7.5 million in a strategic funding round. The funding round was led by MassMutual Investors, the corporate venture capital arm of Mass Mutual Corporation. Existing backers, including Endiya Partners and Light Speed India Ventures, also participated in the funding round.
Scrut Automation founder, Aayush Ghosh Choudhury, has revealed plans to utilize fresh capital to develop new use cases in cyber security and information security while also expanding the company’s US presence. With a strong foothold in the US and a team based in the country, Scrut Automation will focus on building effective go-to-market strategies targeted at the US market over the next few quarters.
The implementation of a governance, risk, and compliance (GRC) framework enables technology companies to align their information technology with business objectives, manage risks, and comply with government regulations. However, existing GRC-focused enterprise tools typically cater to the needs of large enterprises, leaving small and mid-sized businesses to manage their compliance manually. As a result, mid-sized cloud-based companies are frequently required to handle various compliance processes manually, including adhering to government regulations, managing audits, and artefacts.
In 2021, Scrut Automation, a SaaS startup, was founded by Choudhury, Kush Kaushik, and Jayesh Gadewar to assist small and medium-sized companies in streamlining their GRC-related tasks and eliminating duplicated efforts. Scrut, a subscription-based platform, provides a unified control framework to small and mid-sized businesses, automating up to 60-70% of their GRC processes and simplifying compliance across multiple frameworks simultaneously. Choudhury emphasized that Scrut Automation is designed to help companies reduce manual disconnected efforts, enabling them to focus on their core business activities.
Scrut Automation reports having expanded 45 times since its last funding round, which saw an annualized revenue ARR of $35K. The startup has set its sights on growing its revenue by four times by the end of the 2023 calendar year. With more than 250 clients worldwide, Scrut has provided services to a broad range of organizations and now boasts a global workforce of over 65 employees.
Scrut Automation competes with several other SaaS startups in the GRC space, including Enterprise Process Center Solutions, LogicGate, and MetricStream. According to a Statista report, India’s SaaS industry is projected to reach $2.15 billion by 2023, with a further growth forecast to $3.25 billion by 2027. The industry is expected to expand at a CAGR of 10.87% during the period from 2023 to 2027.
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