Scrut Automation raises $10 million in funding round from existing investors

Governance, risk and compliance (GRC) platform Scrut Automation on Tuesday said it has raised $10 million in growth capital from existing investors Lightspeed Venture Partners, MassMutual Ventures and Endiya Partners.

The company will use the funding to enhance its platform capabilities, incorporate generative artificial intelligence use cases to reduce the manual effort for risk and compliance teams, and expand to North American and European markets.

With the latest round, the 2021-founded firm has raised a total of $20.5 million. Scrut solves risk and compliance challenges faced by mid-market technology businesses in highly regulated industries such as financial services and healthcare.


Scrut’s platform helps clients consolidate their compliance and risk management processes while contextualising their risks, reducing duplication of effort, and automating control monitoring.

“A financial services company in the lending space will have very different regulations, compliance frameworks and risks from a healthcare services company for hospitals,” said Aayush Ghosh Choudhury, cofounder and CEO of Scrut Automation. “We have 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.”

Scrut Automation derives about 40% of its revenues from the US, a market it entered a year ago, Choudhury told ET.

"Given the increase in the number of breaches and attacks over the past few years as well as increase in regulatory compliance requirements, mid-size enterprises are now adopting strong governance, risk, and compliance (GRC) practices,” Dev Khare, partner at Lightspeed, said in a statement.

Prior to Scrut Automation, cofounders Choudhury and Jayesh Gadewar were building Gomigo, a procurement software suite for enterprise customers. The duo teamed up with Kush Kaushik to build Scrut Automation.