Scrut Automation secures $10M in funding round to help companies maintain compliance programs

GRC platform Scrut Automation announced that t it has raised $10 million in growth capital, enabling the company to enhance its platform capabilities, incorporate generative AI use cases to reduce the manual effort for risk and compliance teams, and expand to North American and European markets.

The funding is from existing investors Lightspeed, MassMutual Ventures, and Endiya Partners. With this round, the company has now raised $20.5 million in total venture funding since its inception in 2021.

“Mid-market organizations have limited options,” says Aayush Ghosh Choudhury, co-founder and CEO of Scrut Automation. “They can buy off-the-shelf compliance automation tools that offer a one-size-fits-all approach to compliance, disconnected from the organizational risks; or invest in expensive enterprise-grade tools with year-long implementation and underutilized features.”

Scrut Automation was created to address the unique risk and compliance challenges faced by tech-first mid-market businesses in highly regulated industries.

According to Scrut, these companies grapple with stringent compliance requirements from regulators and industry bodies, and mounting pressure to keep risk under the threshold, but are often hindered by limited budgets and understaffed teams. Moreover, a rapidly evolving threat landscape, accelerated by the adoption of generative AI, massive layoffs in cybersecurity teams, and the counter-intuitive, yet very real increasing skill gap in cybersecurity further exacerbate the problem for the teams.

Scrut Automation provides a third option for companies that seek to build scalable GRC programs aligned with the organization’s goals, risks, and resources. Scrut helps companies consolidate their compliance and risk management processes while contextualizing their risks, reducing duplication of effort, and automating control monitoring, according to the company.

“A core USP for Scrut is offering an extremely high degree of flexibility in creating GRC programs that fits 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. Scrut has also built practice areas for regulated industries like healthcare, financial services, and enterprise software, that allow the platform to embed expertise in addition to automation,” added Choudhury.

As Scrut continues to grow, it aims to help mid-market companies build strong risk and compliance management practices with reduced dependency on human capacity and expertise, through an AI-first GRC concierge, according to the company.

For more information about this news, visit www.scrut.io.