Scrut Automation, a Governance, Risk, and Compliance (GRC) platform, announced raising $10 million in growth capital from current investors Lightspeed Venture Partners, MassMutual Ventures, and Endiya Partners.
The firm plans to use the funds to improve platform features, integrate generative artificial intelligence for risk and compliance teams, and expand into North American and European markets.
With this latest funding round, the firm founded in 2021 has amassed $20.5 million. Scrut addresses risk and compliance challenges encountered by mid-market technology companies, particularly those in heavily regulated sectors like financial services and healthcare.
Scrut’s platform assists clients in streamlining compliance and risk management processes, contextualizing risks, minimizing redundant efforts, and automating control monitoring.
“A financial services company in the lending space will have very different regulations, compliance frameworks and risks from a healthcare services company for hospitals… We have also built practice areas for regulated industries like healthcare, financial services and enterprise software that allow the platform to embed expertise in addition to automation,” Aayush Ghosh Choudhury, co-founder and CEO of Scrut Automation, said.
According to Choudhury, about 40% of Scrut Automation’s revenue comes from the United States, a market it ventured into just a year ago.
“Given the increase in the number of breaches and attacks over the past few years as well as increase in regulatory compliance requirements, mid-size enterprises are now adopting strong governance, risk, and compliance (GRC) practices,” Dev Khare, partner at Lightspeed, said in a statement.
Before establishing Scrut Automation, co-founders Choudhury and Jayesh Gadewar were developing Gomigo, a procurement software suite for enterprise clients. They later joined forces with Kush Kaushik to create Scrut Automation.
