Regtech startup Data Sutram has raised $9 million to enhance its AI fraud detection platform, aiming to serve digital-first industries such as cryptocurrency, gaming, e-commerce, and real-time payments while also expanding into Southeast Asia and the Middle East.

The Mumbai-based startup attracted $9 million in fresh funding, co-led by global investors B Capital and Lightspeed. This capital infusion, which includes both primary and secondary investments, sets the stage for the company’s aggressive expansion beyond traditional banking into dynamic, high-risk sectors.

The regtech startup focuses on utilizing artificial intelligence to combat digital fraud, a growing challenge as global digital transactions continue to surge. Its core product, the Trust Score, analyzes over 250 external data sources, ranging from telecom activity and logistics data to social media trails, to identify synthetic identities and collusion networks.

Expanding Into Crypto, Gaming, and Real-Time Payments

With its enhanced AI fraud detection capabilities, Data Sutram will target high-risk, high-growth verticals, including crypto, gaming, e-commerce, and real-time payments. These sectors face escalating threats from synthetic IDs and mule accounts—risks the startup aims to mitigate using advanced algorithms and behavior modeling.

The company also plans to use this round to sharpen its fraud intelligence tools and enter international markets like Southeast Asia and the Middle East, where mobile-first economies generate complex risk profiles that demand real-time fraud solutions.

Data Sutram currently supports several leading Indian financial institutions, including HDFC Bank, Axis Bank, IndusInd Bank, Union Bank of India, Piramal Finance, and L&T Finance. The company claims to have analyzed over 110 million unique identities through its platform, utilizing AI to create a 360-degree risk profile for each customer while ensuring compliance with relevant privacy laws.

Data Sutram Aiming for Global Regtech Leadership

Founded in 2018 by Rajit Bhattacharya, Ankit Das, and initially listed co-founder Sagnik Poddar, the startup positions itself as a next-generation infrastructure layer for fraud prevention. Its recent $3 million funding in 2023 and a $2.07 million round in 2022 have enabled it to deepen partnerships across India’s banking sector.

Now, with this $9 million milestone, the team will scale its AI fraud detection engine, grow its 65-member workforce, and roll out enhanced services tailored to crypto, gaming, and e-commerce firms worldwide.

Despite reporting a revenue of INR 5.6 crore and a loss of INR 10.8 crore for FY24, Data Sutram remains bullish on its vision. According to sources, the company is now seeking a post-money valuation of between $60 million and $70 million.

By combining regulatory intelligence with AI, the regtech startup continues to build tools that adapt to the evolving digital economy. It will double down on real-time payments, expand AI fraud detection models, and penetrate underserved markets across Southeast Asia.

Stay ahead of the curve and follow IndiaTechDesk on Facebook, Twitter and Linkedin for in-depth news of market trends, funding updates, and regulatory changes affecting startups in India.