Scrut Automation, a San Francisco-based start-up, has successfully raised $10 million in growth capital to help mid-market businesses, particularly in heavily regulated sectors such as financial services and healthcare, manage their governance, risk, and compliance responsibilities. Co-founded in 2021 by Aayush Ghosh Choudhury, Kush Kaushik, and Jayesh Gadewar, Scrut offers an alternative to off-the-shelf compliance automation tools that are disconnected from the organization’s risks or expensive enterprise-grade tools with lengthy implementations. The company’s software platform aims to automate data collection needed for GRC teams to manage controls across the organization, providing visibility of performance against risk management and compliance metrics in near real-time.
Unlike enterprise-grade solutions that can take months to implement, Scrut’s software can be customized to an organization’s needs and be up and running within two to three weeks. The company has also built practice areas for several regulated industries to cater to specific needs. With annualized revenue growth of 350% since its launch and over 550 customers, Scrut has been recognized as one of the fastest-growing businesses in its sector by social software review platform G2. Investors, including Lightspeed, MassMutual Ventures, and Endiya Partners, are also optimistic about Scrut’s growth prospects, bringing the total amount raised by the company to over $20 million.
The importance of a strong security posture and GRC practices is increasing not only for large enterprises but also for mid-sized enterprises due to the rise in breaches and regulatory compliance requirements. Dev Khare, a partner at Lightspeed, commends Scrut for reducing the burden on security and GRC teams with its user-friendly platform. Anvesh Ramineni, managing partner at MassMutual Ventures, highlights that legacy GRC products are not meeting the needs of high-growth technology-first companies, unlike Scrut, which caters to their specific pain points seamlessly. Choudhury mentions that the majority of the recently raised funds will be allocated to further research and development at the company, particularly in leveraging artificial intelligence technologies to support compliance work.
The success of Scrut Automation lies in its ability to provide mid-market businesses with a cost-effective and efficient solution to manage their governance, risk, and compliance responsibilities. By offering a customizable software platform that automates data collection and provides real-time visibility of performance against risk management and compliance metrics, Scrut has attracted over 550 customers and achieved 350% annualized revenue growth since its launch in late 2021. With the continuous support of investors such as Lightspeed, MassMutual Ventures, and Endiya Partners, Scrut is well-positioned to further develop its tools and leverage artificial intelligence technologies to enhance its compliance work support capabilities.
In a market where the need for strong security postures and GRC practices is increasing for mid-sized enterprises, Scrut’s user-friendly platform is making it easier for GRC teams to effectively manage risks and compliance. By focusing on the needs of high-growth technology-first companies and addressing their pain points seamlessly, Scrut has differentiated itself from legacy GRC products that are primarily built for enterprises. The latest fundraising round totaling $10 million will enable Scrut to continue its mission of providing innovative solutions to mid-market businesses in heavily regulated sectors, ultimately supporting them in staying on top of their governance, risk, and compliance responsibilities as they grow and expand.
