Reducto Lands $24.5 Million After Parsing 250 Million Pages

Reducto was founded in 2023 by Adit Abraham and Raunak Chowdhuri, both former engineers at Google and Nvidia, with the goal of helping enterprises extract structured information from complex unstructured documents. The company combines traditional computer vision methods with new Vision-Language Models (VLMs) to create a parsing platform that achieves higher accuracy and reliability than existing solutions.

Since launching, Reducto has parsed over 250 million pages for thousands of companies, including customers like Scale AI and Vanta, as well as multiple Fortune 500 enterprises. The platform is used to power critical workflows across finance, healthcare, tech, and legal industries, solving bottlenecks in document processing that have historically slowed down broader AI adoption.

Today, Reducto announced a $24.5 million Series A funding round led by Benchmark, with participation from First Round Capital, BoxGroup, and Y Combinator. The round brings Reducto’s total funding to $33 million. Benchmark’s Chetan Puttagunta, known for investments in companies like Elastic and Mulesoft, has joined Reducto’s board.

Reducto’s parsing platform is designed around the principle of multi-pass parsing, where outputs are not only extracted but automatically verified and corrected by Vision-Language Models in subsequent passes. This method mimics a human-in-the-loop review process without requiring manual intervention, which significantly increases accuracy, especially on complex documents involving handwriting, checkboxes, equations, and varied layouts.