Data Sutram bags $9M series A funding led by B Capital, Lightspeed

Regulatory technology startup Data Sutram will use the funding to expand its fraud detection capabilities beyond banking into sectors like insurance, gaming, and crypto, while scaling its team and operations for international growth.

May 22, 2025 - 12:10

Data Sutram bags $9M series A funding led by B Capital, Lightspeed

Regulatory technology startup Data Sutram has raised $9 million in Series A funding round co-led by global venture firms B Capital and Lightspeed. The company seeks to expand its AI-powered fraud detection and compliance platform across new verticals and international markets.

The funding will help Data Sutram expand its fraud detection capabilities beyond banking into sectors like insurance, gaming, and crypto, while scaling its team and operations for international growth, it said in a statement.

Founded in 2019, Mumbai-based Data Sutram helps financial institutions detect fraud, ensure regulatory compliance, and reduce non-performing assets using alternative data and AI.

The platform processes over 110 million individual identities, offering real-time insights through its proprietary “Trust Score,” which evaluates patterns across digital footprints to identify risks such as synthetic identities, collusion, and identity theft.

When a user inputs a name, phone number, and email, the system scans millions of digital and social footprints—from government and telecom sources to ecommerce, logistics, and payment data—to generate a fraud risk assessment instantly.

“Our USP is external intelligence,” said Rajit Bhattacharya, Co-founder and CEO. "Most of our partners had never sold data before,"

The company seeks to bring visibility into a customer’s behaviour outside the bank’s environment—right at the entry point. Whether it's a new account, a loan, or an insurance application, the company can help assess if the transaction is trustworthy.

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The company’s technology is already used by several large banks, NBFCs, and fintechs in India.

Data Sutram operates as a data processor, aggregating and analysing data on the backend. Its machine learning models are designed to detect outliers and pattern deviations, rather than relying on rigid templates of fraud, the company said.

Karan Mohla, General Partner at B Capital, said, the firm was drawn to Data Sutram’s architectural scalability and early enterprise traction. “They’ve already onboarded large financial institutions—a rare feat for an early-stage startup in this space,” he said.

The regtech category itself is experiencing tailwinds, Mohla added, driven by rapid digitisation in financial services and the growing urgency to address rising fraud levels with compliant, AI-native solutions. “The infrastructure had lagged behind the pace of user and product growth. That’s changing now.”

Hemant Mohapatra, Partner at Lightspeed, noted the platform’s versatility and compliance-first design. “With digitization accelerating, the need for intelligent, real-time fraud signals is only growing. Data Sutram is uniquely positioned to meet this demand.

Edited by Megha Reddy