Scrut Automation, a San Francisco-based start-up, has successfully raised $10 million in growth capital to address the challenges that mid-market businesses face when managing risk and compliance. Co-founded in 2021 by Aayush Ghosh Choudhury, Kush Kaushik, and Jayesh Gadewar, the company aims to provide an alternative to the costly and time-consuming enterprise-grade solutions available to larger enterprises. By targeting heavily regulated sectors such as financial services and healthcare, Scrut offers a software platform designed to help small GRC teams automate data collection and manage controls across the organization.
The goal of Scrut’s software platform is to provide GRC teams with greater visibility of the organization’s performance against risk management and compliance metrics. By automating the collection of data from various software systems used by different functions within the organization, Scrut enables GRC teams to identify shortcomings in near real-time and implement remediation measures accordingly. Unlike enterprise-grade solutions that may take months to implement, Scrut’s platform can be customized and deployed within two to three weeks, making it more accessible to mid-market businesses.
Since its launch at the end of 2021, Scrut has experienced significant growth, with annualized revenue increasing by 350% and over 800 customers on board. The company’s success has been recognized by G2, a social software review platform, which ranked Scrut as one of the fastest-growing businesses in its sector. Investors have also shown confidence in the company’s growth prospects, with the recent fundraising bringing the total amount raised to over $20 million. Lightspeed, MassMutual Ventures, and Endiya Partners are among the investors supporting Scrut’s mission.
According to Dev Khare, a partner at Lightspeed, the increase in cybersecurity breaches and regulatory compliance requirements has led mid-sized enterprises to adopt stronger GRC practices. Scrut’s user-friendly platform aims to reduce the burden on security and GRC teams, making risk management more seamless and effective. Anvesh Ramineni, managing partner at MassMutual Ventures, notes that legacy GRC products are not tailored to the needs of high-growth technology-first companies, whereas Scrut is specifically designed to address their pain points.
The majority of the funds raised by Scrut will be allocated to further research and development, with a focus on leveraging artificial intelligence technologies to enhance compliance work. Choudhury emphasizes the importance of collaboration and communication within organizations when it comes to effective risk management, highlighting that compliance is a team sport. By empowering GRC teams with the tools they need to streamline their processes and collaborate with other functions, Scrut aims to help mid-market businesses navigate the complexities of risk and compliance in a rapidly evolving landscape.
