Sprinto, a security compliance and risk platform, has just announced their successful Series B funding round, raising $20 million. The funding will be used to enhance their compliance management platform by integrating more automation features, and to expand their customer base to include a diverse range of digitally-operating companies that are not predominantly tech-focused.
In today’s digital landscape, adhering to compliance frameworks such as SOC 2, GDPR, and HIPAA is essential for businesses of all sectors to ensure the protection of their data and customer privacy. However, managing compliance is often a complicated and time-consuming process for most companies, requiring constant record-keeping and monitoring of data flow.
To solve this issue, Sprinto is focused on automating the compliance management process. This includes tasks such as vendor risk management, vulnerability assessment, access control, and collecting evidence. The platform currently offers support for popular frameworks like SOC 2, ISO 27001, GDPR, CCPA, HIPAA, PCI-DSS, and CIS, and integrates with over 160 HR, IT, and engineering systems of their customers. Sprinto utilizes a combination of AI, GPTs, and their own large language model to streamline compliance management. The company plans to continue improving their platform through R&D efforts.
“Our goal is to help companies build trust and grow their business by utilizing the trust they have established,” says Girish Redekar, co-founder of Sprinto, in an interview with TechCrunch.
The Series B funding round, which was entirely in equity, brings Sprinto’s total capital raised to $31.8 million. The round was led by Accel, with participation from existing investors Elevation Capital and Blume Ventures.
In the automated compliance management market, Sprinto has competitors like Vanta and Drata. However, Redekar emphasizes that Sprinto stands out by automating the entire compliance management process, focusing on helping businesses build trust.
Sprinto was founded by Redekar and Raghuveer Kancherla after their previous company, Recruiterbox, was acquired by private-equity firm Turn/River Capital in 2018. Being familiar with the challenges and complexities of compliance, the co-founders set out to tackle this problem with their new venture.
With a team of 200 employees, Sprinto currently services over 1,000 customers in 75 countries. However, a majority of their clientele is based in the U.S. and Europe. The company aims to expand its presence in these markets by targeting traditional businesses that have adopted technology but are not inherently tech-focused.
“The biggest opportunity lies in digitally-native companies; they may not be primarily tech-based, but they use technology to some extent. In today’s world, every company has a digital aspect, and we are focused on tapping into that market,” Redekar explains to TechCrunch.
“We are able to go a step further than fulfilling a requirement. Instead, we want to ensure your security, continuously and more efficiently. We also want to provide tools that help you demonstrate your compliance to external stakeholders,” Redekar adds.
Sprinto has not disclosed their valuation, but Ravi Adusumalli, co-managing partner at Elevation Capital, reveals that the company’s growth has been over 20x since their Series A funding round in 2021. In addition, Redekar reports that the company’s Annual Recurring Revenue (ARR) has more than tripled from 2022 to 2023 and is expected to double in the following year.
The fresh funding will be utilized by Sprinto for product development and to cater to more businesses. Redekar shares that the company plans to quadruple their current intelligent automation within the next 12 months.
“Sprinto is revolutionizing compliance management by making it low-touch, automated, and efficient, allowing companies to focus on their core business. With a deep understanding of their product and a strong focus on execution, the company has been on an impressive growth trajectory. We are excited to partner with Girish, Raghuveer, and the Sprinto team in their mission to turn compliance into a growth driver for businesses,” says Shekhar Kirani, partner at Accel, in a statement.
