India’s RegTech ecosystem just got a major boost as B2B SaaS startup Data Sutram has raised USD 9 million (~INR 77.40 crore) in its Series A round led by global venture capital firms B Capital and Lightspeed Venture Partners. The round is a primary and secondary transaction and marks a big step in the company’s journey to transform how financial institutions and high-risk industries fight fraud and manage risk.
Founded in 2018 by Rajit Bhattacharya, Ankit Das, and Aisik Paul, Data Sutram uses artificial intelligence and data from over 250 external sources to offer a fraud detection and risk intelligence platform. The platform, centered around its flagship product DS Authenticate, gives a proprietary Trust Score that flags synthetic identities, collusion and identity theft in real-time—tools that are essential to reduce non-performing assets (NPAs) and mule accounts in the banking and financial services industry (BFSI).
While banks, NBFCs and fintech firms were the traditional focus, Data Sutram is now looking at a broader landscape. With the new funding, the Mumbai-based startup will expand into cryptocurrency, real-time payments, gaming, e-commerce, quick commerce and insurance—industries that are increasingly vulnerable to digital fraud as online transactions surge.
“Last year saw a sharp rise in digital fraud largely due to increasing digital account openings and lending,” said co-founder and CEO Rajit Bhattacharya. “This funding will help us build a more secure financial ecosystem by embedding trust and intelligence at the very core of every transaction.”
As part of its growth strategy, Data Sutram will also expand globally and target Middle East and Southeast Asia markets where digital finance is growing rapidly but underserved in terms of localized fraud detection solutions.
“The existing fraud detection systems are not keeping up with the evolution of user behavior, especially in markets like India,” said Karan Mohla, General Partner at B Capital. “Data Sutram’s approach to contextual identity assessment and real-time analytics makes them a standout in the RegTech space.”
The company’s FY24 revenue was INR 5.6 crore, up from INR 4.4 crore in FY23. But net losses more than doubled from INR 4.75 crore in FY23 to INR 10.83 crore in FY24 as the company invested in product development and talent acquisition. Bhattacharya said losses are narrowing in FY25 and the company aims to be breakeven in a year.
Data Sutram has screened over 110 million identities and claims to have reduced fraud for clients by up to 45%. Its clients include HDFC Bank, Axis Bank, Amazon Pay, IndusInd Bank, Union Bank of India, Piramal Finance and L&T Finance.
Before this round, the company raised USD 3 million (~INR 25.8 crore) in 2023 led by Singularity Growth Fund and USD 2.07 million (~INR 17.8 crore) in 2022 led by Varanium Capital and Yatra Angel Network. This takes Data Sutram’s total funding to USD 15 million (~INR 129 crore). Other investors include 100X.VC, Indian Angel Network, IIFL Fintech Fund and White Venture.
The founders see a future where Data Sutram’s Trust Score becomes an industry standard, underwriting every digital transaction—like a credit score but for fraud risk and regulatory compliance.
“This is the next phase of our journey,” Bhattacharya said. “We want to make sure every transaction, from loans to real-time payments, is underwritten by trust and powered by intelligence.”
Data Sutram Series A round is not just a validation of the business but a reflection of a bigger trend: the need for intelligent, adaptive and compliant fraud prevention in a digital world. With eyes on international markets and new verticals, Data Sutram is set to become a category defining company in AI-powered RegTech.
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