Data Sutram, a fast-growing artificial intelligence (AI) and data analytics startup, has successfully raised $9 million in its latest funding round. The new capital will help the company expand its fraud detection services in the BFSI (Banking, Financial Services, and Insurance) sector. This is a major milestone for the Indian startup, which is known for using AI and machine learning to offer powerful business intelligence solutions.
The funding round was led by top venture capital firms and key strategic investors who believe in the company’s vision to make digital systems safer, smarter, and more reliable. The new funding gives Data Sutram the support it needs to scale operations, improve its fraud detection platform, and reach a wider range of clients in the BFSI space.
Founded in 2018, Data Sutram started with a goal to help businesses make better decisions using external data and advanced data modeling techniques. Over the years, the startup has built a strong reputation in financial technology (fintech) and cybersecurity, especially among banks, NBFCs, and insurance companies that need tools to manage risk, detect fraud, and increase customer understanding.
In today’s fast-changing world, fraud in the BFSI sector has become a serious threat. From identity theft and digital payment fraud to loan scams and fake account setups, financial institutions are facing complex cyber threats daily. Data Sutram’s tools help fight these issues by offering real-time insights powered by alternative data, such as location data, device patterns, transaction behavior, and social signals.
With the help of AI, the startup can predict potential fraud before it happens. Their fraud detection engine flags suspicious activity using patterns that traditional systems often miss. This is especially helpful for banks and NBFCs working in rural or underbanked regions, where customers often lack credit history or formal data. By using non-traditional data, Data Sutram allows financial institutions to assess risk more accurately and detect fraud early.
The $9 million raised will be used in multiple ways. First, a major portion will go toward enhancing research and development (R&D) to make their fraud detection models even more advanced. The company also plans to hire top data scientists, software engineers, and cybersecurity experts to build a stronger tech team.
Secondly, the funding will help expand the company’s client base across India and into international markets. Data Sutram wants to work with more private and public sector banks, insurance providers, and digital lenders who need smarter ways to verify customer data and prevent financial crimes.
Another important goal is to improve the platform’s scalability and reliability. As more banks and fintech firms adopt cloud services, the company aims to make its fraud detection tools easier to integrate with existing systems. This will allow faster onboarding and better performance, especially for digital-first companies that rely heavily on real-time data.
In an official statement, Data Sutram’s co-founder and CEO, said, “We are excited about this funding round, which allows us to grow faster and make banking safer for millions. Fraud detection in the BFSI sector is no longer optional — it is necessary. Our AI-driven platform gives banks and lenders the edge they need to stay ahead of fraudsters.”
The CEO also emphasized that the company will use this opportunity to educate the market about the importance of data-driven fraud prevention and support more banks in adopting risk-based models. He added that compliance with regulatory frameworks like RBI’s data protection guidelines and international standards is a key priority for the company.
Industry experts believe that Data Sutram’s growth is well-timed. In recent years, India has seen a sharp rise in digital banking, UPI-based payments, and online lending. While these trends offer convenience, they also create more entry points for fraud. According to a 2024 report by a global cyber intelligence firm, fraud losses in India’s BFSI sector crossed ₹6,000 crore last year alone. The need for smarter fraud detection tools is greater than ever.
Data Sutram’s strength lies in its ability to bring together data intelligence and AI-powered prediction. It uses over 600 alternative data points, including satellite data, demographic insights, utility consumption patterns, and mobile usage data, to build a 360-degree risk profile of a customer. This is especially useful for financial inclusion, helping banks reach more people without increasing the risk of fraud.
In addition to fraud detection, the startup also offers tools for customer onboarding, loan risk scoring, and market expansion strategies. Their platform is used by over 50 BFSI clients, including leading NBFCs, rural banks, fintech startups, and credit bureaus. Many clients have reported a 30–40% improvement in fraud detection rates after switching to Data Sutram’s system.
This funding success reflects a bigger trend in India’s startup ecosystem, where AI-first companies are attracting serious attention from investors. As the BFSI sector becomes more digitized, the demand for data-driven solutions will continue to rise. Data Sutram is now among the top names leading this charge.
With the $9 million in hand, the company plans to launch new AI models specifically designed for insurance fraud, credit card misuse, and real-time fraud monitoring. They are also exploring partnerships with regulators, cybersecurity agencies, and global banks to promote safer digital practices in the financial industry.
The next 12 months will be crucial for Data Sutram as it shifts into growth mode, rolls out its fraud detection services to new clients, and builds deeper trust in the fintech ecosystem. If successful, the startup could become one of India’s most valuable AI-driven cybersecurity firms in the BFSI space.To sum it up, Data Sutram’s $9 million funding marks a turning point not only for the company but also for the future of fraud detection in India’s financial sector. With smart technology, responsible data use, and a strong vision, this homegrown startup is ready to make banking safer — one data point at a time.
