SpotDraft Bags $54 Mn To Help Biz Automate Legal Contracts

SUMMARY

Led by Vertex Growth and Trident Partners, the round also saw participation from existing backers Xeed VC, Arkam Ventures, Prosus Ventures, and Premji Invest

The legal tech startup plans to utilise the fresh proceeds for market expansion, hire for key leadership roles, “deepening” the use of AI and focus on product enhancements

Founded in 2017, SpotDraft operates an AI-powered CLM platform that helps sales, legal and human resources teams manage multiple aspects of contracting

AI-driven enterprise tech startup SpotDraft has raised $54 Mn in its Series B funding round led by Temasek subsidiary Vertex Growth and Trident Partners.

The round also saw participation from existing backers Xeed VC, Arkam Ventures, Prosus Ventures, and Premji Invest.

The startup plans to utilise the fresh proceeds for market expansion and to hire for key leadership roles. A chunk of the capital will also be used for “deepening” the use of AI in its product suite and focus on product enhancements.

Founded in 2017 by Shashank Bijapur, Madhav Bhagat and Rohith Salim, SpotDraft operates an AI-powered contract lifecycle management (CLM) platform that helps sales, legal and human resources teams manage multiple aspects of contracting, including AI-assisted redlining, e-signatures, third-party papers, clickwrap agreements, among others.

“We believe 2025 will be an inflection point for team SpotDraft… Apart from market expansion and talent growth, we’re strongly committed to deepening the use of AI in the product to help legal teams unlock efficiencies and drive innovation,” said cofounder and CEO Bijapur.

Commenting on the fundraise, Vertex Growth’s managing partner James Lee said, “SpotDraft’s product vision and go-to-market strategy is anchored on a deep understanding of enterprise legal teams’ pain points and the unwavering commitment to delivering a world-class solution in enabling faster and more accurate contract processes. We‘re excited to join and support SpotDraft as they continue to leverage AI to transform the legal tech landscape.”

This follows SpotDraft raising $26 Mn in its Series A funding round led by Premji Invest in March 2023. It also bagged $1.5 Mn in a round led by Binny Bansal-backed 021 Capital in 2019. With offices in Bengaluru and New York, SpotDraft claims to have more than 250 employees under its belt.

The startup claims to cater to clients such as Spendlfo, MoEngage, Garner, Crunchbase, among others.

This comes at a time when AI has spawned the rise of multiple legal tech startups that help customers automate tasks like contract drafting, legal briefs, opinions, and filings. As a result, investors are making a beeline for the emerging sector.

In November 2024, Info Edge announced plans to invest INR 4 Cr in its portfolio legal tech company LegitQuest. Prior to that, AI-powered legal tech startup jhana.ai secured $1.6 Mn in its maiden funding round led by Together Fund.