Scrut Automation Secures $10 Million in Growth Funding to Bolster GRC Platform and Expand Globally

Scrut Automation
Preeti Bali / 10:53 am / April 4, 2024

Scrut Automation, a Bangalore-based enterprise technology startup specializing in Governance, Risk, and Compliance (GRC) solutions, has successfully secured $10 million in growth capital. This latest funding round comes from a group of existing investors, including Lightspeed, MassMutual Ventures, and Endiya Partners.

Fresh Funds to Fuel Platform Development, AI Integration, and Global Expansion

The newly acquired capital will empower Scrut Automation to significantly enhance its platform capabilities. This includes the incorporation of cutting-edge Generative AI (GenAI) use cases aimed at streamlining manual tasks for risk and compliance teams. Additionally, the company plans to leverage the funding to expand its operations into the lucrative North American and European markets.

Building Scalable GRC Programs for Mid-Market Enterprises

Founded in 2022 by Aayush Ghosh Choudhury, Jayesh Gadewar, and Kush Kaushik, Scrut Automation caters specifically to tech-first mid-market enterprises. The company’s innovative platform empowers these businesses to build and manage scalable GRC programs that seamlessly align with their unique goals, risk profiles, and resource constraints.

Streamlining Compliance and Risk Management

Scrut Automation’s user-friendly platform offers a centralized solution for consolidating various compliance and risk management processes. This comprehensive approach helps companies streamline workflows by contextualizing risks, eliminating redundant efforts, and automating control monitoring.

Adaptable Platform Addresses Industry-Specific Needs

A key differentiator for Scrut Automation lies in its highly flexible platform. The solution adapts to the specific needs of each client, ensuring a perfect fit for their individual GRC environment. This is particularly significant as regulations and compliance frameworks differ vastly across industries. For instance, a healthcare company’s risk profile and compliance requirements are demonstrably distinct from those of a financial lending institution. Scrut Automation seamlessly tailors itself to these variations, providing a customized GRC experience for each client.

Serving Diverse Industries and Automating Control Management

Scrut Automation offers industry-specific solutions catering to a wide range of sectors, including healthtech, fintech, and SaaS. The platform boasts the capability of automating tests across a staggering 70% of controls, significantly reducing the manual effort typically associated with monitoring control ownership and evidence collection.

Meeting the Growing Demand for Robust GRC Practices

Dev Khare, Partner at Lightspeed, a leading investor in Scrut Automation, highlights the growing importance of robust GRC practices. He emphasizes the alarming rise in data breaches and cyberattacks, coupled with increasingly stringent regulatory compliance requirements, as key drivers for this trend. Scrut Automation’s user-friendly and market-leading platform provides a much-needed solution, alleviating the GRC burden for security and compliance teams within mid-sized enterprises.

Building a Strong Client Base and Facing the Competition

Scrut Automation has successfully established itself within the GRC space, having secured prominent clients like Leadsquared, Cashfree Payments, and Gameskraft. The company competes with other established players in the market, including LogicGate, Enterprise Process Center Solutions, and MetricStream.

Funding Secured Amidst Challenging Market Conditions

This latest funding round is particularly noteworthy given the current climate of the Indian startup ecosystem, which is currently experiencing a period of funding slowdown. However, despite these challenges, the enterprise tech sector has demonstrated resilience, with funding for such companies rising to $305 million in Q1 of 2024, compared to $194 million during the same period in the previous year.

With this newly acquired capital, Scrut Automation is poised for significant growth, aiming to solidify its position as a leading provider of GRC solutions for tech-driven mid-market enterprises across the globe.

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