Data Sutram, a rising star in the regulatory technology (RegTech) space, has raised $9 million in a Series A funding round co-led by global investment powerhouses B Capital and Lightspeed. The company plans to deploy the capital to scale its artificial intelligence (AI)-driven fraud detection and compliance platform, diversify into new industry verticals, and accelerate international expansion.
The funding round marks a pivotal milestone for the company, which continues to innovate at the intersection of data intelligence and regulatory compliance. By combining deep data analytics with machine learning, Data Sutram offers businesses robust tools to detect, prevent, and manage fraud while remaining compliant with evolving regulatory frameworks.
Expanding Scope Beyond Traditional Banking
Initially, Data Sutram focused on solving data intelligence and fraud detection problems for the banking sector. Over the past few years, the startup has developed and deployed advanced tools that help financial institutions identify anomalous behavior, reduce risks, and ensure compliance with increasingly stringent guidelines.
With this new round of capital, Data Sutram will expand its AI capabilities into other high-risk industries including insurance, online gaming, and cryptocurrencies. These sectors face unique regulatory pressures and fraud risks, which require dynamic and adaptive technology solutions.
Ashish Anand, CEO and co-founder of Data Sutram, stated that the team will now customize its fraud detection models for specific use cases across multiple industries. He emphasized the urgency of delivering AI-powered solutions to sectors where manual compliance processes fall short and legacy systems hinder scalability.
Revolutionizing RegTech with AI
Data Sutram’s platform uses machine learning algorithms to analyze structured and unstructured data in real time. The system flags suspicious patterns and predicts fraudulent activity before it causes financial damage. Its real-time risk scoring model enhances due diligence, customer onboarding, and transaction monitoring.
The platform integrates seamlessly with existing IT infrastructures and allows organizations to automate compliance workflows. Companies can monitor transactions, identify sanctioned entities, and ensure adherence to anti-money laundering (AML) and know-your-customer (KYC) regulations without manual bottlenecks.
By offering scalable APIs and dashboard interfaces, Data Sutram empowers both startups and established enterprises to integrate high-level compliance processes into their operations without heavy development efforts.
Backing from B Capital and Lightspeed
The participation of B Capital and Lightspeed in this funding round reinforces growing investor confidence in the RegTech sector. Both firms have a strong track record of backing disruptive companies that leverage AI and data to create market-defining solutions.
B Capital brings global expertise and strategic networks that will support Data Sutram’s efforts to enter new international markets. Lightspeed offers operational mentorship and technology advisory that will help the company build robust engineering and sales teams.
Partnering with these venture giants ensures that Data Sutram receives not just funding, but also critical guidance in navigating regulatory landscapes across countries and scaling operations responsibly.
Building for a Global Future
Data Sutram plans to use the funding to strengthen its global footprint. The company has identified Southeast Asia, the Middle East, and Latin America as priority markets due to rising demand for regulatory intelligence platforms. These regions host emerging economies where financial systems are undergoing digital transformation, creating urgent needs for compliance and fraud management.
The company will hire local teams, set up regional partnerships, and adapt its AI engines to region-specific regulatory environments. By localizing its platform, Data Sutram ensures that global clients can deploy it without facing delays in implementation or barriers in legal compliance.
Ashish Anand confirmed that the team will also open new offices and hire talent across data science, product management, and business development. He highlighted the importance of building cross-functional teams that understand both technology and compliance to serve complex markets effectively.
New Industry Verticals on the Horizon
Beyond banking and fintech, Data Sutram will now enter the insurance, gaming, and cryptocurrency sectors—each of which faces rapid digitalization and evolving compliance risks.
In insurance, the company will target use cases like identity fraud, fake claims, and underwriting anomalies. AI models trained on regional insurance data will enhance the accuracy and speed of fraud detection, while also supporting regulatory reporting.
For the gaming sector, which faces risks related to payment fraud, account hijacking, and age verification, Data Sutram will offer a unified compliance suite. This includes player onboarding verification, transactional risk monitoring, and age validation.
The cryptocurrency sector poses some of the most complex regulatory challenges today. Data Sutram plans to deliver real-time risk scoring and AML compliance tools tailored for crypto exchanges, wallets, and DeFi platforms. With increased scrutiny from global regulators, crypto companies urgently need scalable compliance infrastructure—a gap that Data Sutram intends to fill.
Commitment to Data Ethics and Transparency
As it expands, Data Sutram remains committed to ethical data usage and transparency. The company adheres to strict data privacy frameworks such as the General Data Protection Regulation (GDPR) and India’s Digital Personal Data Protection Act. The AI models operate on anonymized datasets and undergo regular audits to eliminate bias, protect user privacy, and ensure fairness.
The company also publishes transparency reports and offers clients full visibility into decision-making processes within its fraud models. This approach helps clients build trust with their own users and regulators, reducing friction during compliance checks and audits.
A Growing Need for RegTech Innovation
The global RegTech market has grown significantly in recent years, driven by digital transformation, increasing fraud sophistication, and tightening regulatory environments. Governments and financial watchdogs across the world are introducing stricter regulations and demanding higher accountability from businesses.
Legacy compliance systems fail to keep up with the speed and scale of today’s financial transactions. Manual checks often lead to delays, errors, and operational bottlenecks. Startups like Data Sutram provide a much-needed alternative by embedding AI into the heart of compliance processes.
By proactively identifying risk and automating complex workflows, RegTech firms offer both economic and strategic value to businesses. Data Sutram positions itself at the forefront of this movement, blending data science with domain expertise to serve the world’s most vulnerable and dynamic industries.
Conclusion
With $9 million in fresh Series A capital, Data Sutram now enters a new phase of growth and global relevance. The company’s decision to expand into new verticals such as insurance, gaming, and crypto shows confidence in its product capabilities and market fit. Backing from top-tier investors like B Capital and Lightspeed strengthens its credibility and prepares it for a global rollout.
As businesses worldwide face growing challenges in managing fraud and staying compliant, Data Sutram offers a smart, AI-driven solution. The company combines innovation with responsibility and positions itself as a key player in the next chapter of RegTech evolution. Through its bold expansion plans, Data Sutram not only protects financial ecosystems but also sets a high standard for the future of compliance technology.