SpotDraft, a leading AI-powered Contract Lifecycle Management (CLM) solution for high-growth startups and scaleups, has announced that it has raised $26 million in Series A funding. The funding round was led by Premji Invest, with participation from Prosus Ventures, 021 Capital, Arkam Ventures, Riverwalk Holdings, and 100x Entrepreneur Fund. The company plans to use the funds to further develop its product and expand aggressively in North America, which it has identified as a key market.
SpotDraft’s platform is designed to be used not just by legal teams, but also by sales, marketing, human resources, business operations, and procurement teams. The platform leverages the legal team’s expertise without creating bottlenecks or wasting time on repetitive tasks. The web app integrates with tech stacks used by startups and enterprises, including Salesforce, Hubspot, Slack, Google Drive, and more.
The company’s AI-powered CLM has processed over 1 million contracts and has freed up over 1.5 million hours previously spent on tedious paperwork for customers such as Airbnb, Notion, Panasonic, Strava, and Chargebee. The platform speeds up various aspects of the contract review and management process, such as providing a quick summary of tracked changes received, enabling semantic search across contracts, and generating follow-up tasks on contract execution.
SpotDraft’s co-founder and CEO, Shashank Bijapur, said that legal teams spend upward of five hours per week on repetitive tasks, which equates to as much as $25,000 per year per lawyer. SpotDraft’s platform acts as a co-pilot for legal teams, taking care of the repetitive tasks and enabling them to focus on higher leverage activities.
Atul Gupta, Partner at Premji Invest, said that SpotDraft’s product is loved by teams across the organization because it elegantly solves the business problem of creating a seamless experience for multiple stakeholders, including legal, sales, and finance.
Ashutosh Sharma, Head of India Investments for Prosus Ventures, said that while leading organizations around the world are already investing in automated CLM tools, the overall level of adoption is still relatively modest. SpotDraft has addressed this gap efficiently with their strong value proposition and demonstrated strong early traction and significant cost advantages.