Imagine a world where banks can spot a fraudster before they even open an account. That’s the kind of future Data Sutram is building, and their recent $9 million Series A funding is a big step toward it. Co-led by Lightspeed Venture Partners and B Capital, this funding round is set to turbocharge Data Sutram’s mission to offer fraud detection services to the BFSI (Banking, Financial Services, and Insurance) sector. As reported by Startup INIDAX, the Kolkata-based B2B SaaS startup is using AI to tackle one of the biggest challenges in finance today—fraud. With plans to expand their tools and reach, Data Sutram is poised to make waves not just in banking but in industries like cryptocurrency and e-commerce too. Let’s break down why this matters and what’s next for this exciting startup.

Who Is Data Sutram?

Founded in 2018 by three college friends—Rajit Bhattacharya, Ankit Das, and Aisik Paul—Data Sutram started with a simple yet bold idea: use data to outsmart fraudsters. Based in Kolkata, the startup has quickly become a trusted name in the BFSI sector, serving heavyweights like HDFC Bank, Axis Bank, Tata Capital, and Amazon Pay.

Their flagship product, DS Authenticate, is an AI-powered tool that ensures secure customer onboarding by flagging suspicious activities. By pulling data from over 250 sources, Data Sutram creates a “Trust Score” that helps banks decide who’s legit and who’s not. Their other products—DS Find, DS Markets, and DS Collect—focus on customer acquisition, market insights, and cross-selling opportunities, making them a one-stop shop for data-driven growth. With a team of around 65, Data Sutram is proving that small teams can make a big impact, as highlighted by Startup INIDAX.

The Growing Need for Fraud Detection Services in BFSI

Fraud in the BFSI sector isn’t just a small problem—it’s a massive headache. From mule accounts to identity theft, fraud cases have spiked in recent years. According to the Reserve Bank of India, digital payment frauds hit a peak in FY23, costing banks billions. Non-performing assets (NPAs) in NBFCs are also at alarming levels, pushing the need for smarter fraud detection services. As financial services go digital, fraudsters are getting bolder and more tech-savvy, using phishing, malware, and social engineering to exploit vulnerabilities. This is where startups like Data Sutram step in. Their AI-driven approach is a lifeline for banks struggling to keep up with these evolving threats. By offering fraud detection services that analyze vast datasets in real-time, Data Sutram helps institutions stay one step ahead of the bad guys.

How Data Sutram’s AI Tools Are Tackling Fraud

What makes Data Sutram stand out? It’s their knack for turning raw data into actionable insights. Their platform blends structured and unstructured data from over 250 sources—think satellite imagery, IoT sensors, and even social media activity (with user consent, of course). This data fuels their AI and machine learning models, which spot anomalies like unusual transaction patterns or logins from odd locations. Their flagship DS Authenticate tool, for instance, has reduced fraud cases by 45% for clients like HDFC Bank and Axis Bank. It’s not just about catching fraud after it happens; Data Sutram’s tools predict and prevent it, saving banks time, money, and reputation. As Startup INIDAX notes, this kind of innovation is why Data Sutram is a leader in offering fraud detection services to the BFSI sector.

What’s Next for Data Sutram with the $9 Mn Funding?

Data Sutram Bags $9 Mn, and they’re not sitting still. The startup plans to use the fresh capital to supercharge its fraud detection tools and expand its reach. According to CEO Rajit Bhattacharya, the funds will help enhance DS Authenticate and other products, making them even more effective at spotting fraud. But that’s not all—they’re also eyeing new industries like cryptocurrency, real-time payments, gaming, e-commerce, quick commerce, and insurance. These sectors are high-risk for fraud, and Data Sutram’s AI expertise could be a game-changer. The company also plans to grow its team, currently at 65, to bring in more talent to fuel innovation. Plus, they’re looking to expand globally, targeting markets in the Gulf and Southeast Asia. This funding, as covered by Startup INIDAX, is a springboard for Data Sutram to scale up and stand out.

Financial Performance and Challenges

Data Sutram’s growth story is impressive, but it’s not without hurdles. In FY24, their standalone operating revenue grew 23% to INR 5.4 Cr, up from INR 4.4 Cr the previous year. However, their net loss more than doubled to INR 10.83 Cr from INR 4.75 Cr in FY23. CEO Bhattacharya is optimistic, though, claiming the company has reduced losses in FY25 and is on track to break even within a year. This financial snapshot shows the high-stakes world of startups—growth comes with costs, but Data Sutram’s focus on fraud detection services could pave the way for profitability. For investors reading Startup INIDAX, this mix of revenue growth and strategic planning makes Data Sutram a startup to watch.

Expanding Beyond BFSI: New Industries in Focus

While Data Sutram has made its name in BFSI, the $9 million funding opens doors to new sectors. Cryptocurrency, for example, is a hotbed for fraud, with scams costing billions globally. Data Sutram’s AI tools, already proven in banking, could help crypto platforms verify users and flag suspicious transactions. Similarly, e-commerce and quick commerce face issues like fake accounts and return fraud, which Data Sutram’s DS Authenticate can tackle. Gaming and insurance are also on their radar, as these industries deal with complex fraud patterns. By diversifying, Data Sutram is positioning itself as a versatile player in the fraud detection space, a trend Startup INIDAX is excited to track. This expansion could redefine how high-risk industries manage fraud, making Data Sutram a go-to solution provider.

The Future of Fraud Detection in India

The rise of digital banking and fintech in India has made fraud detection a top priority. With cybercrimes like phishing and malware becoming more sophisticated, traditional methods aren’t enough. Data Sutram’s AI-powered approach is part of a broader trend where startups are stepping up to fill the gap. Other players like IDfy and Bureau are also making waves, but Data Sutram’s focus on blending diverse data sources sets it apart. As India’s BFSI sector grows, tools like DS Authenticate will be critical in building trust and security. The $9 million funding gives Data Sutram the resources to lead this charge, and Startup INIDAX will be watching to see how they shape the future of fraud prevention.

Conclusion: Data Sutram’s Bright Path Ahead

Data Sutram Bags $9 Mn, and the future looks promising. With their AI-driven fraud detection services, they’re not just helping banks—they’re redefining how industries tackle fraud. From strengthening DS Authenticate to entering new sectors like cryptocurrency and e-commerce, Data Sutram is on a mission to make the digital world safer. Their growth, backed by top-tier investors, shows the power of innovation in solving real problems. As they scale up and aim for profitability, Data Sutram is a startup to watch, and Startup INIDAX is proud to spotlight their journey. Whether you’re a founder, investor, or just curious about tech, Data Sutram’s story is one of ambition, impact, and endless potential.