Scrut Automation Raises $10 Mn To Enter New Markets, Incorporate GenAI Use Cases

Enterprise tech startup Scrut Automation has raised $10 Mn (around INR 83 Cr) in growth capital from its existing investors Lightspeed, MassMutual Ventures and Endiya Partners.

The governance, risk and compliance (GRC)-focussed SaaS startup said that the freshly raised capital will be used to boost its capabilities, incorporate generative AI (GenAI) use cases and expand to North American and European markets.

The fundraise comes almost a year after Scrut raised $7.5 Mn in a funding round from MassMutual Investors.

Founded in 2022 by Aayush Ghosh Choudhury, Jayesh Gadewar and Kush Kaushik, Scrut helps tech-first mid-market enterprises build scalable GRC programmes aligned with their goals, risks and resources. 

It helps companies consolidate their compliance and risk management processes while contextualising their risks, reducing duplication of effort and automating control monitoring.

“A core USP for Scrut is offering an extremely high degree of flexibility in creating GRC programmes that fit closely with the customer’s environment. For example, a financial services company in the lending space will have very different regulations, compliance frameworks, and risks from a healthcare services company for hospitals. Scrut accounts for this context – as the platform adapts seamlessly to these differences,” cofounder and CEO Choudhury said.

Scrut provides solutions for various industries like healthtech, fintech, and SaaS. It claims that its platform automates tests across more than 70% of the controls, reducing manual effort in chasing control owners and capturing evidence.

Lightspeed’s partner Dev Khare said, “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 GRC practices. Scrut’s user-friendly and market-leading platform reduces this burden for security and GRC teams.

The startup counts the likes of Leadsquared, Cashfree Payments, and Gameskraft among its customers. In the GRC space, it competes against startups like LogicGate, Enterprise Process Center Solutions and MetricStream. 

Scrut has raised a total funding of $20.5 Mn till date. 

The fundraise comes at a time when the Indian startup ecosystem continues to be under the strong grip of the funding winter. However, the funding raised by enterprise tech startups rose to $305 Mn in Q1 of 2024 from $194 Mn in the year-ago period.