Sprinta security risk and 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 a wide range of businesses that operate digitally but are not technological first.
Compliance with frameworks such as SOC 2, GDPR, and HIPAA have become crucial for businesses across industries to ensure data security and privacy, but managing compliance remains a cumbersome process for most businesses, as which requires teams to frequently maintain logs and periodically 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 archiving tasks. The company’s platform connects directly to its customers’ HR, IT and engineering systems through more than 160 integrations and features built-in support for popular frameworks such as SOC 2, ISO 27001, GDPR, CCPA, HIPAA, PCI -DSS and CIS. Sprinto uses a combination of AI, GPT, and its own internal big language model to deliver efficiencies in compliance management. The company said it intends 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 businesses using the trust they have built,” Sprinto co-founder Girish Redekar told TechCrunch.
Accel led the all-equity Series B financing round, bringing the company’s total capital raised to $31.8 million. 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 is primarily focused 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 were familiar with how difficult and onerous the compliance problem can be, and they set out to address that problem. with his 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 both markets by attracting traditional companies that have implemented technology but are not a native technology company.
“The greatest opportunity is in companies that are digitally native; They are not necessarily technological, but they are enabled by technology. 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 more than 20 times since raising its Series A in 2021. Redekar said the company’s ARR is up 3 times from 2022 to 2023, and is projected to double next year.
“We can go a lot further than just checking a box where you can show an auditor that we do this, but we actually want to make it more secure. We want to do it more continuously. And we want to be able to create tools that help him demonstrate what he’s doing to external stakeholders,” she said.
The startup plans to use the new funds for product R&D and serving new businesses. Redekar said the plan is to scale its current intelligent automation four times in less than 12 months.
“Sprinto is doing an incredible job helping companies focus on their core business by making fulfillment simple, automated and efficient. With deep product knowledge and a strong focus on execution, Sprinto has followed an unusual growth trajectory. “We are delighted to partner with Girish, Raghuveer and their team at Sprinto in their mission to ensure compliance becomes a growth driver for businesses,” Shekhar Kirani, partner at Accel, said in a prepared statement.