Fintech startup Data Sutram raises $9 million from B Capital, Lightspeed
Data Sutram, a fintech startup that enables financial institutions to curb fraud and ensure regulatory compliance, has raised $9 million through a mix of primary and secondary funding, founder and chief executive, Rajit Bhattacharya, told ET.
The financing round was co-led by venture capital firms B Capital and Lightspeed.
The Mumbai-based company will use the capital to expand its team, boost product capabilities and accelerate development of its artificial intelligence (AI)-driven platform, said Bhattacharya.Data Sutram, which focuses on serving lenders and banks, will also use the new funding to support its expansion into other sectors such as cryptocurrency, real-time payments, gaming, ecommerce, quick commerce and insurance.
'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 Bhattacharya.
'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.
Data Sutram, founded in 2018, uses AI and external data from over 250 sources to help businesses in lending, payments and insurance curb fraud and reduce cybersecurity risks. Its proprietary trust score analyses millions of digital footprints to identify fraud patterns such as identity theft, synthetic identities, and collusion.The platform is designed to reduce the creation of mule accounts, improve approval rates, and lower non-performing assets.
According to its website, the company works with major financial institutions, including HDFC Bank, Axis Bank, IndusInd Bank, Union Bank of India, Piramal Finance and L&T Finance.
In 2023, Data Sutram raised $3 million in a round led by Bharat Fund, with participation from Singularity Growth Fund, IIFL, YAN, White Venture, and other existing investors. '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.'
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