Reducto Secures $75 Million Series B Funding to Reinvent AI Document Intelligence
In a significant move toward advancing artificial intelligence in document management, Reducto has announced a successful Series B funding round, securing $75 million led by the notable venture capital firm Andreessen Horowitz. This latest investment brings the total funding for Reducto to $108 million since its inception two years ago, following a previous Series A round of $24.5 million conducted in April 2025.
Founded by Adit Abraham and Raunak Chowdhuri, Reducto focuses on innovative ways to process and understand complex documents using a combination of optical character recognition (OCR) and Vision-Language Models (VLMs). This technology allows Reducto to interpret documents as humans would, thus paving the way for businesses to leverage unstructured data effectively. The platform has witnessed exponential growth in usage, processing nearly a billion pages in recent months alone, catering to a diverse clientele, including AI-native startups and major financial institutions.
The demand for intelligent data processing has surged, and Reducto's capabilities address critical challenges across various sectors, such as healthcare and finance. High-stakes tasks like extracting data from legal documents and analyzing financial statements are now more streamlined, thanks to Reducto's sophisticated solutions.
Jennifer Li, General Partner at Andreessen Horowitz, highlighted the company's impact on large-scale documentation processes, remarking that Reducto has become an essential tool for modern AI firms. This sentiment is echoed by their growing user base, which now includes several Fortune 10 companies, indicating a strong market presence and validated demand for their innovative services.
The latest funding will allow Reducto to accelerate research and development efforts, further enhancing its product offerings. In particular, the company plans to broaden its model research while expanding its outreach to both enterprise clients and the next generation of AI innovators. The goal is to make reliable document ingestion accessible to startups, ensuring they can utilize the same advanced infrastructure that major enterprises currently enjoy.
Reducto's unique approach simplifies the lifecycle of unstructured data management. The platform not only generates AI-ready inputs but also encompasses a developer-friendly API and a user-friendly workspace known as Reducto Studio. This suite of tools allows businesses to build, evaluate, and deploy their data processing pipelines efficiently.
Strategically, Reducto is poised at a critical juncture; with technology that is proving to be effective, coupled with exploding market demand, the potential for expansion and innovation is vast. Chetan Puttagunta from Benchmark expressed excitement about the company’s trajectory, describing it as an enticing opportunity for those looking to join a forward-thinking enterprise that is defining a new market category in AI.
As Reducto expands its capabilities and broadens its client base, it seeks to empower all organizations—ranging from up-and-coming startups to established corporations—with the tools necessary to navigate the complexities of document intelligence in the modern landscape. By fostering innovation and accessibility, Reducto is not only shaping the future of AI document processing but also positioning itself as an indispensable component in the AI infrastructure landscape.
To explore more about Reducto and the solutions it offers, visit
Reducto's website or check out available career opportunities to become a part of this transformative journey in document intelligence.