Funding round led by Elevation Capital, with participation from Accel and Blume Ventures
Funding will be deployed to ramp up hiring and R&D. Startup to open first North American office in Utah by quarter-end
The global Enterprise Governance, Risk Management and Compliance market is expected to grow to $60.7 Bn by 2026, at a CAGR of 10.9%
Compliance automation startup Sprinto has raised $10 Mn in Series A funding led by Elevation Capital and a clutch of other institutional investors.
The round also saw participation from Accel and Blume Ventures.
The funding will be deployed to boost hiring and to open the startup’s first North American office in U.S’ Utah by this quarter’s end. The startup will also use the investment to ramp up Research and Development (R&D) to ensure long-term growth.
Sprinto cofounder Raghuveer Kancherla said, “Being SOC2 compliant has become a revenue concern for SaaS businesses of all sizes. Recognizing this growing need, Sprinto aims to become the infosec OS of choice for SaaS service providers. It’s creating a new product category that’s fundamentally different from existing automation tools. Sprinto is focused on delivering outcomes, not just automation. This is ingrained into the team’s design, outlook, internal processes, and culture.”
Echoing the sentiment, Elevation Capital Partner Deepak Gaur said, “We’re very excited about partnering with Raghu and Girish as they built the future of compliance automation. Sprinto solves a critical business need in a growing market. It has created a world-class product which is already emerging as the compliance automation platform of choice for SaaS companies and generating tremendous customer acclaim.”
Helping Companies Automate Complainces
The startup was founded in 2020 by Girish Redekar and Raghuveer Kancherla. Sprinto helps SaaS companies obtain SOC-2 compliance faster, which in turn helps these companies close enterprise deals and pass vendor security assessments easily.
Service Organization Control 2 (SOC2) defines criteria for managing customer data based on principles related to security, availability, processing integrity, confidentiality or privacy.
Obtaining and maintaining SOC2 compliance is painstaking work and takes hundreds of hours of work each year. Sprinto helps its clients create a real-time monitoring system that issues an alert in case of policy violations.
Earlier in January of 2020, the startup had raised close to $1.5 Mn in funding from Blume Ventures.
The startup claims to have grown rapidly since the launch of its website back in June of 2021. Sprinto says that it has nearly doubled its Accounting Rate of Return (ARR) in the last 10 weeks alone.
The global Enterprise Governance, Risk Management and Compliance (EGRC) market stood at $36.1 Bn in 2021. The market is expected to grow to $60.7 Bn by 2026, at a CAGR of 10.9%.
The EGRC market has seen an uptick since governments across the world have introduced complex regulatory environments to deal with privacy issues. Be it the GDPR that was enforced in 2018 or the SOC2 regulations which came to being in 2009, the demand for such softwares has risen many fold.
Sprinto competes with many U.S-based emerging startups for a piece of the compliance automation market. Other players in the sector include Vanta, Tugboat Logic and SecureFrame which all help streamline compliance.
Sprinto already boasts of hundreds of customers providing services to enterprise-level accounts such as HP and Hackerrank.
This comes barely days after security compliance platform, Scrut Automation, raised $3 Mn in seed funding from Lightspeed and Endiya Partners.
Sprinto is already a trailblazer in the field and the investment could go a long way in forging a solid growth trajectory for the startup. As such, the announcement should be welcomed and could spur a new revolution in the field led by Indian startups.
