Sprinta security and risk compliance platform, has raised a $20 million Series B round to build more automation into its compliance management platform and expand its customer base to include the broad range of companies that operate digitally but are not technology-first.
Compliance with frameworks such as SOC 2, GDPR and HIPAA has become vital for companies across all sectors to ensure data security and privacy, but managing compliance 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 includes vendor risk management, vulnerability assessment, access control, evidence collection and other archiving tasks. The company’s platform connects directly to its customers’ HR, IT and engineering systems through more than 160 integrations and has full support for 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 big language model to deliver efficiency in compliance management. The company said it aims to focus more on providing intelligence to the platform by boosting its R&D.
“Our goal is to help companies build trust and grow their business using the trust they’ve built,” Sprinto co-founder Girish Redekar told TechCrunch.
The all-Series B funding round, which brings 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 main competitors. However, Redekar said Sprinto’s primary focus is on automating the entire compliance management process and helping businesses build trust.
Redekar co-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 onerous compliance can be, they set out to tackle 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 US and Europe. It plans to expand its presence in both of these markets by attracting traditional businesses that have developed technology but are not inherently a technology company.
“The biggest opportunity is in companies that are digitally native. they are not necessarily tech-first, but they are tech-enabled. Increasingly, every company is a digital company in one way or another. We’re 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 more than 20 times since it raised its Series A in 2021. Redekar said its ARR company increased 3 times from 2022 to 2023 and is projected to double next year.
“We can go a mile beyond just checking a box where you can show an auditor that we’re doing that, but we actually want to make you safer. We want to do it more continuously. And we want to be able to build tools to help you show what you’re doing to external stakeholders,” he said.
The startup plans to use the new funding for product R&D and to serve new businesses. Redekar said the plan is to scale its current intelligent automation fourfold in less than 12 months.
“Sprinto does an incredible job helping companies focus on their core business by making compliance low, automated and efficient. With a deep understanding of the product and a strong focus on execution, Sprinto is on a rare growth trajectory. We are excited to partner with Girish, Raghuveer and their team at Sprinto in their mission to ensure that compliance becomes a driver of growth for businesses,” Shekhar Kirani, partner at Accel, said in a prepared statement.
