Scrut Automation Secures $10M Funding for Expansion and AI Integration

• ByStartupStory     |    April 2, 2024

SaaS startup Scrut Automation, specializing in governance, regulation, and compliance management, has announced a significant milestone in its growth journey. The company has successfully raised $10 million in growth capital from existing investors Lightspeed, MassMutual Ventures, and Endiya Partners. This funding round marks a crucial step for Scrut Automation as it gears up for platform enhancement, integrating generative AI for risk and compliance tasks, and expanding into the North American and European markets.

In a statement, Aayush Ghosh Choudhury, Co-founder and CEO of Scrut Automation, emphasized the strategic allocation of funds: “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.”

Choudhury further elaborated on the company’s plans, stating, “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 commercialize them soon.”

Scrut Automation’s platform aids companies in consolidating compliance and risk management processes while contextualizing risks, reducing duplication of effort, and automating control monitoring. The company’s focus on small- and mid-market companies, which often face challenges in accessing specialized consultants for compliance needs, has garnered attention in various sectors, including healthcare and financial services.

Dev Khare, Partner at Lightspeed, commented on Scrut’s user-friendly approach, stating, “Scrut’s user-friendly and market-leading platform reduces this burden for security and GRC teams.”

With this latest funding round, Scrut Automation has raised a total of $20.5 million since its inception. The company, co-founded by Aayush Ghosh Choudhury, Jayesh Gadewar, and compliance expert Kush Kaushik in 2021, has expanded its team to 120 people, with a presence in India, Southeast Asia, and the United States.

Follow Startup Story