Sprinto, a security compliance and risk platform, has raised a $20 million Series B round to build more automation into its compliance management platform and widen its customer base to include the wide gamut of companies that operate digitally but aren’t tech-first.
Compliance with frameworks such as SOC 2, GDPR (General Data Protection Regulation) and HIPAA (Health Insurance Portability and Accountability Act ) has become crucial for companies across sectors to ensure data security and privacy, but compliance management remains a cumbersome process for most businesses, as it requires teams to maintain records frequently and regularly monitor data flows.
Sprinto is working to automate this aspect of security compliance management, which involves vendor risk management, vulnerability assessment, access control, evidence collection and other filing tasks. The company’s platform connects directly with its customers’ HR, IT, and engineering systems via over 160 integrations and has baked-in support for popular frameworks like SOC 2, ISO 27001, GDPR, CCPA (California Consumer Privacy Act), HIPAA, PCI-DSS (Payment Card Industry Data Security Standard), and CIS. Sprinto uses a mix of AI, GPTs and its own internal large language model to offer efficiencies in compliance management. The company said it aims to focus more on bringing intelligence to the platform by bolstering its R&D.
“Our goal is to help companies build trust and grow their business using the trust they’ve built,” Sprinto’s co-founder, Girish Redekar, told TechCrunch.
The all-equity Series B funding round, which takes the company’s total capital raised to $31.8 million, was led by Accel. Existing investors Elevation Capital and Blume Ventures also participated.
The market for automated compliance management solutions already has players such as Vanta and Drata, which Sprinto considers its key competitors. However, Redekar said Sprinto primarily focuses on automating the entire compliance management process and helping businesses build trust.
Redekar founded Sprinto with Raghuveer Kancherla after their startup Recruiterbox was acquired by the private-equity firm Turn/River Capital in 2018. The co-founders were familiar with how difficult and onerous a problem compliance can be, and they set out to address that problem with their new startup.
Sprinto employs about 200 people, and Redekar said it currently has more than 1,000 customers across 75 countries, but a majority of its client base is in the U.S. and Europe. It plans to expand its presence in both these markets by attracting traditional businesses that have deployed tech but are not natively a tech company.
“The largest opportunity is in companies that are digitally native; they are not necessarily tech-first, but are tech-enabled. Increasingly, every company is a digital company in one way or another. We are really focused on growing that market,” Redekar told TechCrunch.
Redekar did not disclose the startup’s valuation, but Ravi Adusumalli, co-managing partner at Elevation Capital, said Sprinto has grown over 20x since it raised its Series A in 2021. Redekar said the company’s ARR rose 3x from 2022 to 2023, and is projected to double in the coming year.
“We are able to go a mile beyond just checking a box where you can show to an auditor that we do this, but we actually want to make you more secure. We want to do it more continuously. And we want to be able to build tools that help you demonstrate what you’re doing to external stakeholders,” he said.
The startup plans to utilize the fresh funding for product R&D and to cater to new businesses. Redekar said the plan is to scale its current intelligent automation by four times in less than 12 months.
“Sprinto is doing an incredible job of helping companies focus on their core business by making compliance low-touch, automated, and efficient. With a deep understanding of the product and a sharp focus on execution, Sprinto has been on a rare growth trajectory. We are thrilled to partner with Girish, Raghuveer, and their team at Sprinto in their mission to ensure that compliance becomes a driver of growth for businesses,” said Shekhar Kirani, partner at Accel, in a prepared statement.
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