SignalX Pvt Ltd, an artificial intelligence (AI)-based risk management and compliance startup, has raised Rs 6 crore (approximately $810,356 at current exchange rates) in a seed funding round.
The round in Hyderabad-based SignalX has been led by 3Lines Venture Capital, a United States-based firm that invests in startups focussing on the future of work, AI, and Industry 4.0.
Other participants in this round include 9Unicorns, the venture fund set up by startup incubator and accelerator Venture Catalysts, and Hyderabad Angels. As part of this transaction, 3Lines venture partner Rajiv Roy will join SignalX’s board of directors.
SignalX was set up in 2018 by Govind Balachandran, Zakir Wahab, and Piyush Arora. The company says its Due Diligence AI platform helps professionals in industries including compliance, risk and legal to conduct a broad range of analyses.
In a statement, Balachandran said the company will use the funding to strengthen its core team as well as expand its customer base.
“With every passing day, regulators are demanding stricter compliance with laws and regulations, leaving risk management professionals across industries in need of a platform that is quick and delivers quality assessment results,” 9Unicorns co-founder and managing director Apoorva Ranjan Sharma said.
The analyses conducted by SignalX’s platform include simple screenings as well as complex programmes such as insolvency, anti-money laundering compliance and financial modelling.
The company operates a software-as-a-service model where users can execute checks on a per-target basis, or against a subscription fee.
SignalX says its clients will also soon be able to integrate its services into their risk management workflows via the application programming interface (API) route.
Other startups that operate in the risk management and compliance space include AdvaRisk and Karza Technologies. Earlier this month, AdvaRisk raised Rs 2.33 crore (around $312,292) from ICICI Bank Ltd.
Prior to this, AdvaRisk raised around Rs 4.96 crore in a seed round in September last year. The round was led by early-stage venture capital firm Sprout Venture Partners.
According to VCCEdge, the data research arm of Mosaic Digital, Karza Technologies raised around $713,101 (around Rs 4.97 crore) in pre-Series A funding last year from investors including the Singapore Angel Network and angel backers.