Scrut Automation secures $10 million in growth capital

Scrut Automation, GRC platform, has announced today that it secured $10 million in growth capital from its existing investors, including Lightspeed, MassMutual Ventures, and Endiya Partners. The funding will be utilized to enhance platform capabilities, integrate generative AI for risk and compliance teams' efficiency, and expand into North American and European markets. With this latest funding round, the company's total venture funding since its establishment in 2021 amounts to $20.5 million.

The platform was developed to tackle the unique risk and compliance challenges faced by tech-focused mid-market enterprises in heavily regulated sectors. These companies encounter stringent compliance requirements from regulators and industry bodies while striving to manage risks within budget constraints and with limited staffing. Additionally, the evolving threat landscape, propelled by generative AI adoption and cybersecurity team downsizing, along with an increasing skill gap in cybersecurity, further compound these challenges.

Aayush Ghosh Choudhury, Co-founder and CEO of Scrut Automation, emphasized the limited options for mid-market organizations, which typically involve either generic compliance automation tools or costly enterprise-grade solutions with prolonged implementation timelines and underutilized features.

Scrut Automation offers a distinct alternative, empowering companies to develop scalable GRC programs aligned with their specific goals, risks, and resources. By streamlining compliance and risk management processes, reducing redundant efforts, and automating control monitoring, Scrut enables organizations to consolidate their efforts and gain near-real-time visibility into their risk and compliance status.

The platform's flexibility in tailoring GRC programs to individual organizational contexts, along with its deep automation capabilities and proprietary unifying control framework, sets it apart. By integrating with over 75 products and automating tests across a majority of controls, Scrut minimizes manual effort, providing GRC teams with timely insights to address risks effectively. Moreover, the unifying control framework links organizational controls with compliance requirements, eliminating duplicate efforts across different frameworks.

Looking ahead, Scrut aims to assist mid-market companies in establishing robust risk and compliance management practices, leveraging AI to reduce reliance on human expertise.

Dev Khare, Partner at Lightspeed, reiterated the importance of a strong security posture for enterprises, particularly amidst rising cyber threats and regulatory demands. MassMutual Ventures' Managing Partner, Anvesh Ramineni, highlighted Scrut Automation's tailored approach to address the needs of high-growth tech companies effectively.

Prior to founding Scrut Automation, Co-founders Aayush Ghosh Choudhury and Jayesh Gadewar recognized the inadequacies of legacy GRC solutions while developing a procurement suite for enterprise customers. With Scrut Automation, they have assisted over 800 customers worldwide in building enterprise-grade GRC programs.

The company's board of angels and advisors from the SaaS and cybersecurity sectors further enriches its expertise.