Reducto Raises $75M to Expand AI Document Processing

Reducto, a company that helps computers read and interpret documents, has raised $75 million in a Series B funding round led by Andreessen Horowitz. Existing investors Benchmark, First Round Capital, BoxGroup, and Y Combinator also participated. Founded by Adit Abraham and Raunak Chowdhuri, Reducto combines text recognition with AI models to understand and process documents.

The company handles nearly a billion pages per month for clients, including AI startups and large financial firms. This round follows a $24.5 million Series A in April 2025, bringing Reducto’s total funding to $108 million. The Series B funding will support ongoing research, product enhancements, and expansion of the platform’s accessibility for businesses of all sizes.

Turning Unstructured Data Into Usable Information

Reducto’s platform addresses challenges with unstructured documents. Using optical character recognition (OCR) alongside AI models that interpret text in context, the platform extracts information from PDFs, charts, and reports that traditional tools often cannot process.

Companies use Reducto to handle tasks such as analyzing financial statements, converting legal documents, and organizing healthcare records. The platform reduces manual effort and helps teams manage large volumes of data efficiently. Smaller startups and research teams can access the same tools as enterprise clients, enabling broader adoption across different sectors.