Data Sutram Raises $9 Mn In Series A Round From B Capital, Lightspeed

Data Sutram, a fintech startup that enables financial institutions to curb fraud and ensure regulatory compliance, has raised $9 million in Series A funding round co-led by global venture firms B Capital and Lightspeed.

The startup plans to grow its AI-based fraud detection and compliance platform into new industries and global markets. The funding will help the company extend its services beyond banking to areas like insurance, gaming, and crypto, while also expanding its team and international operations.

Read also- Global Mobility Giant KPIT Technologies Opens New Technology Center In Sweden

“I think over the last year, there has been a huge rise in fraud in the industry from a banking and financial perspective, driven by the digitisation wave and the increase in lending, digital transactions and digital account openings,” said, Rajit Bhattacharya, Co-founder and CEO of Data Sutram.

“So, we’ve been trying to build the concept of looking at identity as a whole and are working with some of the best banks in the country to implement it. It’s been a learning cycle—from both a product maturity and company standpoint,” he said.

“The existing technologies or the existing ways to protect banking and intra-systems were not necessarily keeping up with the changes on the user side. Also, it’s a slightly different way of looking at the challenge in India and other markets like India, compared to more developed markets where user behavior is different,” said Karan Mohla, general partner at B Capital. “I think that was one of the things Rajit and the team built that was so attractive and continues to be attractive to us.”

According to its website, Data Sutram works with leading financial institutions like HDFC Bank, Axis Bank, IndusInd Bank, Union Bank of India, Piramal Finance, and L&T Finance.

In 2023, the company raised $3 million in funding. The round was led by Bharat Fund, with support from Singularity Growth Fund, IIFL, YAN, White Venture, and other existing investors.

About Data Sutram

Founded in 2019 by Bhattacharya, Ankit Das and Aisik Paul, Mumbai-based Data Sutram helps financial institutions spot fraud, follow regulations, and lower bad loans using AI and alternative data.

The platform analyzes over 110 million identities and gives real-time risk insights through its unique “Trust Score.” This score checks digital footprints to spot issues like fake identities, identity theft, or collusion. 

When a user enters a name, phone number, and email, the system quickly scans data from sources like government records, telecom, ecommerce, logistics, and payments to assess fraud risk instantly.

Startup Funding News: Your Gateway to Every Funding Update.

Latest Startup News: Stay updated with the latest startup news and trends. Your go-to source for startup ecosystem updates.

Startup Stories: Discover inspiring tales of startups overcoming challenges, and achieving success.