Sprinto raises $20M to bring automation to security compliance management

Sprinto, a security compliance and risk management platform, raised a $20 million Series B round to integrate more automation into its compliance management platform and expand its customer base to include a wide range of businesses that operate digitally but are not technology-driven.

Compliance with frameworks such as SOC 2, GDPR and HIPAA has become crucial for businesses across industries to ensure data security and privacy, but managing compliance remains a tedious process for most businesses, because it requires teams to keep records frequently and monitor data flows regularly.

Sprinto is working to automate this aspect of security compliance management, which involves vendor risk management, vulnerability assessment, access control, evidence collection and others classification tasks. The company’s platform connects directly to its clients’ HR, IT and engineering systems through more than 160 integrations and supports popular frameworks such as SOC 2, ISO 27001, GDPR, CCPA, HIPAA, PCI -DSS and CIS. Sprinto uses a blend of AI, GPT and its own internal large language model to deliver effective compliance management. The company said it wants to focus more on bringing intelligence to the platform by strengthening its R&D.

“Our goal is to help companies build trust and grow their business using the trust they’ve built,” Grish Redekar, co-founder of Sprinto, told TechCrunch.

The all-stock Series B funding round, which brings the company’s total capital 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 main competitors. However, Redekar said Sprinto’s primary focus is 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 private equity firm Turn/River Capital in 2018. The co-founders knew how difficult and expensive a compliance issue can be, so they set out to solve this problem with their new startup.

Sprinto employs about 200 people and Redekar said it currently has more than 1,000 customers in 75 countries, but the majority of its customer base is in the United States and Europe. It plans to expand its presence in these two markets by attracting traditional companies that have deployed technologies but are not natively technology companies.

“The biggest opportunity is in businesses that are digital native; they are not necessarily technology-driven, but rather technology-driven. Increasingly, every business is, in one way or another, a digital business. We’re really focused on growing this market,” Redekar told TechCrunch.

Redekar did not disclose the startup’s valuation, but Ravi Adusumalli, co-head of Elevation Capital, said Sprinto has grown more than 20 times since it raised its Series A in 2021. Redekar said that the company’s ARR increased 3 times from 2022 to 2023 and is expected to double in the coming year.

“We’re able to go way beyond just checking a box where you can show an auditor that we’re doing it, but we actually want to keep you more secure. We want to do it more continuously. And we want to be able to create tools that help you demonstrate what you do to external stakeholders,” he said.

The startup plans to use the new funding for product R&D and meet the needs of new businesses. Redekar said its plan is to quadruple its current intelligent automation in less than 12 months.

“Sprinto does an incredible job helping businesses focus on their core business by making compliance simple, automated and efficient. With a deep understanding of the product and a keen focus on execution, Sprinto has embarked on a rare growth trajectory. We are excited to partner with Girish, Raghuveer and their team at Sprinto in their mission to ensure compliance becomes a growth engine for businesses,” said Shekhar Kirani, Partner at Accel, in a prepared statement.