Gurugram-based legaltech startup, SpotDraft, has announced $1.5 Mn (approx INR 11 Cr.) pre-Series A funding round led by Binny Bansal-backed 021 Capital. Other investors who participated in the round are Freshworks cofounder, Girish Mathrubootham; Karanpal Singh, founder, Hunch Ventures; Chargbee’s chief of growth, Indus Khaitan; Peeyush Ranjan, VP engineering of Google Inc. and Singapore Angel Network.
SpotDraft will use this fund to expand its global footprint with a focus on both large as well as small and medium size enterprises. “We are aggressively selling in Southeast Asia followed by US and Europe. These are the three locations where we are expanding.”, SpotDraft’s cofounder and CEO, Shashank Bijapur, told Inc42.
He further added, “We plan to triple our team size in the next two-three months. Along with the growing team size, we will soon open a new office in Bengaluru to get more access to clients, capital and talent.
SpotDraft was cofounded by Shashank Bijapur and Madhav Bhagat in 2017. It is an AI driven end-to-end contract lifecycle management platform. SpotDraft enables businesses to automate their contract analysis, contract management and contract creation processes.
According to Sailesh, SpotDraft has implementations going on in almost every continent. Company’s average revenue per customer is around $100K per year and has a roughly 40% month-on-month growth rate.
In October 2017, SpotDraft has raised $550K (INR 3.5 Cr) in a seed funding round led by VC firm Hunch Ventures. The other investors that participated in the round include Japan-based Spiral Ventures, 500 Startups, Singapore Angel Network and Citrus Payments founder Satyen Kothari.
In May 2017, another Delhi-based legaltech startup LegalRaasta has raised $5 Mn (INR 32 Cr) in Series A round of funding led by Impanix Capital.
Other competitors in the sector are CaseMine, NearLaw, Pensieve, LawRato, Practice League, and MyAdvo. Talking about the differentiating factor, cofounder Madhav Bhagat said, “SpotDraft algorithms can go inside a contract and identify if a clause is compliant or not and also suggest remedial measures to it. We have built a unique robust question answering model, where you can ask question on your contract and the system will provide answers to the query.”
According to Inc42 DataLabs, Indian legaltech sector witnessed over $6.9 Mn funding in the period of 2014-2018.
SpotDraft’s lead investor, 021 Capital also recently made its first close of $32 Mn (INR 222 Cr) in the last month. It is an early-stage venture capital fund backed by Flipkart founder Binny Bansal. Over a third of this VC’s new corpus came from Flipkart employees and Wipro chairman Azim Premji’s Azim Premji Foundation.