NEW DELHI: Backed by Flipkart co-founder Binny Bansal, 021 Capital has invested $1.5 million ( ₹11 crore) in artificial intelligence (AI) and machine learning (ML) based legal tech startup ‘SpotDraft’, the company announced today.
In the pre-series A funding, Freshworks co-founder Girish Mathrubootham, Hunch Ventures founder Karanpal Singh, Chargebee’s Indus Khaitan, and others also participated. “We are excited about this new phase of growth for SpotDraft. We want companies to move out of track changes into the 21st century. Our platform can help companies create, analyse and manage legal contracts, all with zero human intervention," Shashank Bijapur, co-founder and CEO, SpotDraft, said in a statement.
In its previous round, SpotDraft had raised seed fund of ₹3.5 crore from Hunch Ventures as its lead investor.
021 Capital’s CEO Sailesh Tulshan said the dynamic algorithmic model of SpotDraft is like a superpower tool to evaluate legal documents and make decisions at 10x the speed and accuracy. “Legal documents are still stuck in the 1980s. They are re-imagining changing the way contracts will be analysed and reviewed in the future. Excited to be long-term partners with the SpotDraft team," he said.
SpotDraft said it will utilise the fund in growing its global footprint and target both large as well as small and medium enterprises that are looking to cut their legal expenses. Using AI and ML to automate contract management, the platform identifies key clauses and legal information from contracts and compares them to internal legal standards to point out the good, bad and ugly.
A big portion of SportDraft’s business today comes from European firms which utilise its tool to analyse compliance with GDPR, which they can do in minutes as opposed to hours it would take to do manually. The company also focuses on privacy and non-disclosure agreements, master services agreements, credit or facility- related agreements apart from GDPR and regulatory compliance.