Sprinto raises $10 mn in Series A funding

BUSINESS DESK: Sprinto, a compliance automation platform for SaaS companies, has raised $10 million in Series A funding led by Elevation Capital with participation from Accel, and Blume Ventures.

The funding will be used for team expansion across key functions and R&D to ensure long-term growth. Earlier, in January 2020, the company had raised $1.5 million in seed funding from Blume Ventures. Sprinto will ramp up hiring and also open its first North American office, in Utah, by this quarter’s end.

Since its website launch in June 2021, Sprinto has grown rapidly, doubling its ARR (annual recurring revenue) over the last 10 weeks alone. Despite competition from a few emerging US companies, Sprinto boasts of enterprise customers such as HP and Hackerrank.

The company offers a compliance automation platform that helps SaaS companies obtain compliances, such as SOC 2, ISO27001, GDPR, HIPAA etc., in a quick and hassle-free manner. Obtaining these compliances helps Sprinto’s customers close enterprise deals and pass vendor security assessments easily. It was co-founded by Girish Redekar and Raghuveer Kancherla, who have been colleagues for 15 years.

Developed by the American Institute of Certified Public Accountants (AICPA), SOC 2 (Systems and Organizations Controls 2) is a set of compliance requirements for companies, especially service organizations, which use cloud-based storage for their customers’ data. It is based on five core Trust Services Criteria of security, availability, processing integrity, confidentiality, and privacy. SOC 2 audits have become essential in regulatory oversight, vendor management programs, internal governance, and risk management.

Currently, obtaining and maintaining SOC 2 compliance takes more than 300 hours of work each year. Sprinto’s SaaS platform makes this process 10 times faster, the company claimed.

“As compliance with these standards, including SOC 2, is becoming a critical business need, most companies must rely on infosec consultants and auditors to get the necessary certifications,” said Sprinto co-founder Girish Redekar.

“With a consultant, companies would take around 3-4 months to be ready for SOC 2 assessment. Using Sprinto’s compliance automation platform, companies can complete the SOC 2 readiness assessment in just days. This levels the playing field, helping smaller companies lacking the resources of larger firms.” (Business Standard)