Reducto has secured $75 million in Series B funding led by Andreessen Horowitz. The AI document intelligence platform attracted participation from Benchmark, First Round Capital, BoxGroup, and YCombinator.
This brings total funding to $108 million in under one year. The timing signals explosive growth. Just five months after closing a $24.5 million Series A in April 2025, the company returned with this massive round.
What is Reducto? AI Document Intelligence Explained
Reducto transforms complex documents into AI-ready data using advanced Vision-Language Models combined with traditional OCR technology.
Founded by MIT alumni Adit Abraham (CEO) and Raunak Chowdhuri (CTO) two years ago, the platform reads documents like humans do.
It processes legal contracts with redlines, financial statements with complex charts, and medical records requiring precise extraction.
The company serves AI-native startups like Harvey and Scale AI, plus Fortune 10 enterprises and global financial institutions.
Reducto Series B Investment Analysis
Monthly document processing volume grew sixfold since Series A, now approaching one billion pages. This explosive traction attracted top-tier venture capital interest.
The $75 million will accelerate model research, expand product capabilities including their industry-first AI document editing API, and scale adoption.
Reducto is introducing flexible pricing for startups while maintaining enterprise-grade infrastructure. Document intelligence solves a critical bottleneck for enterprise AI adoption.
Companies need clean, structured data from messy real-world documents. That's exactly what Reducto delivers at production scale.
Reducto AI Startup Funding History
| Round | Amount | Date | Lead Investor | Total Raised |
|---|---|---|---|---|
| Seed | $8.5M | 2023 | YCombinator | $8.5M |
| Series A | $24.5M | April 2025 | Benchmark | $33M |
| Series B | $75M | October 2025 | Andreessen Horowitz | $108M |
Why This AI Startup Funding Matters?
Reducto competes in a market dominated by legacy OCR vendors and emerging AI startups. Their competitive edge is accuracy plus enterprise reliability.
The platform offers both developer APIs and Reducto Studio, an interactive workspace for building document processing pipelines. Their industry-first AI document editing API sets them apart technically.
As enterprises race to implement AI workflows, document processing remains a critical bottleneck. Reducto's hybrid approach combining traditional OCR with modern VLMs delivers production-grade accuracy.
The new flexible pricing lowers barriers for startups while serving enterprise clients. This dual market strategy positions Reducto for category leadership through 2026.
Investment Overview and Company Metrics
| Parameter | Details |
|---|---|
| Funding Amount | $75 million |
| Round Type | Series B |
| Lead Investor | Andreessen Horowitz (a16z) |
| Participating Investors | Benchmark, First Round Capital, BoxGroup, YCombinator |
| Valuation | Not disclosed (estimated $400M+) |
| Founded | 2023 |
| Headquarters | San Francisco, CA |
| Founders | Adit Abraham (CEO), Raunak Chowdhuri (CTO) |
| AI Sector | Document Intelligence & Processing |
| Monthly Volume | Nearly 1 billion pages |
| Customer Base | Fortune 10 enterprises, AI startups, financial institutions |
| AiCurator Rating | 9/10 – Strong execution, proven market fit, elite backing |
Connect With Reducto
| Platform | URL |
|---|---|
| Official Website | https://www.reducto.ai |
| LinkedIn Company | https://www.linkedin.com/company/reductoai |
| Twitter/X | https://twitter.com/reductoai |
| Careers Page | https://reducto.ai/careers |
| Y Combinator Profile | https://www.ycombinator.com/companies/reducto |
What's Next for Reducto in 2025?
The company faces competition from established players but maintains technical superiority. Their vision-language model approach delivers accuracy that legacy systems can't match.
Reducto plans to expand globally while deepening enterprise penetration. The flexible pricing strategy will capture early-stage startups that grow into enterprise clients.
With elite investor backing and proven market demand, Reducto is positioned to become the standard infrastructure layer for AI document processing.
