Redacto Raises ₹12 Crore to Build India’s Privacy Infrastructure

Redacto, an AI-driven privacy infrastructure startup, has closed a ₹12 crore seed round led by PeerCapital and Antler India with participation from angel investors. The company will use the capital to strengthen AI capabilities, expand product and engineering teams, and scale enterprise adoption as Indian organisations prepare for the Digital Personal Data Protection (DPDP) Act.

India’s DPDP Act will change how firms collect, process and share personal data. Redacto positions its product as an enterprise response to that shift: a platform that automates data discovery, consent workflows, third-party accountability and regulatory reporting so businesses can move from compliance as a checklist to continuous governance.

Deal details and investor rationale

The ₹12 crore round was led by PeerCapital and Antler India; both are first-time seed backers for Redacto in this round. Investors say the surge in enterprise data and heightened regulatory requirements create a market for scalable privacy infrastructure. Karthik Prabhakar, Managing Partner, PeerCapital, commented on the urgency of data protection and Redacto’s domain expertise in cybersecurity and enterprise technology.

Redacto bills itself as a full-stack, AI-first privacy platform. Its modules (as described by the company) include:

• Redacto Privacy Engine for automated data mapping and classification.

• ConsentFlow to orchestrate and manage user permissions.

• VendorShield for continuous third-party risk monitoring.

• TrustCentre for transparent compliance reporting and sharing.

The platform claims enterprise deployments with payment companies and NBFCs, and says banks, fintechs and insurers are engaging for DPDP readiness aligned with global frameworks such as GDPR and CCPA.

“The DPDP Act marks the beginning of a privacy-first era for Indian enterprises,” said Shashank Karincheti, Co-Founder & Chief Product Officer, Redacto. “Our goal is to make privacy practical, continuous, and scalable. Redacto is built to turn compliance into confidence and transform how organisations approach sensitive data responsibility.”

“AI isn't just changing business—it's redefining it. Data privacy architecture must evolve at the same pace,” said Amit Kumar, co-founder and CEO of Redacto. “As a full-stack data privacy company, our platform delivers intelligent, end-to-end data governance through AI-first automation, enabling enterprises to innovate without bearing the burden of compliance."

Enterprises facing DPDP compliance pressures—especially payments firms, NBFCs, banks and insurers—stand to gain operational efficiency from automated discovery and consent orchestration. Typical use cases include:

• Rapid data inventories and automated mapping for audit readiness.

• Centralised vendor risk scoring to meet third-party accountability mandates.

• Real-time compliance dashboards for regulators and business stakeholders.

• Embedding privacy controls into product development lifecycles to avoid retroactive remediation.

Risks to monitor

Redacto’s pitch is timely, but several execution questions will matter as it scales:

• Data security and privacy of the privacy tool itself: how Redacto stores and processes sensitive customer metadata will be critical.

• Regulatory validation: Enterprise customers will expect evidence that outputs meet DPDP reporting standards and can stand up to audits.

• Integration complexity: legacy systems, fragmented data lakes and third-party connectors can complicate deployments and timelines.

• Model governance: AI-driven classification needs explainability and error-handling to limit false positives/negatives in sensitive contexts.

PeerCapital and Antler India highlighted the immediate market need for privacy tooling as organisations prepare operationally for DPDP. Their investment signals confidence that a domestically built, compliance-focused stack can address private-sector demand and reduce reliance on ad-hoc controls.

Redacto’s ₹12 crore seed raise is an early vote on privacy infrastructure as foundational enterprise plumbing. If the startup can demonstrate secure, explainable AI classification, smooth integrations and provable audit trails against DPDP requirements, it could become a strategic vendor for India’s regulated sectors. Execution, partnerships and transparent governance will determine whether the company turns regulatory obligation into a competitive business capability for its customers.