How Much Did Reducto Raise? Funding & Key Investors

Date August 22, 2025
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Reducto

COMPANY INFO

Reducto AI, founded in 2023 by Raunak Chowdhuri and Adit Abraham, is a San Francisco-based software development company specializing in AI tools for document ingestion and data structuring. Their platform converts complex and unstructured documents into optimized, structured data compatible with large language models (LLMs) and vector databases, enhancing retrieval augmented generation workflows. The company has around 6 employees and operates primarily in the software development industry with a focus on AI-driven document processing.

How Much Did Reducto Inc Raise? Funding & Rounds and Investors

Reducto Inc is a San Francisco-based software development company focused on artificial intelligence tools for document ingestion and data structuring. Founded in 2023 by Adit Abraham and Raunak Chowdhuri, Reducto Inc specializes in converting complex, unstructured documents into structured data optimized for large language models (LLMs) and vector databases. Operating primarily in the software development applications sector, the company aims to enhance retrieval augmented generation workflows for enterprises. With a lean team of around 6 employees, Reducto Inc has quickly made a name for itself in the AI-driven document processing industry.

Reducto Inc funding history reflects a strategic approach to scaling its technology and enterprise solutions. To date, Reducto Inc has raised a total of $32.9 million across two funding rounds. The company's fundraising milestones include a robust Seed round, followed by a significant Series A to fuel further platform development and enterprise growth. Reducto Inc funding rounds have attracted top-tier investors in venture capital, reflecting strong confidence in its solution for unlocking unstructured data. The company's investment strategy has centered on technology acceleration and expanding enterprise adoption, with each funding round supporting new product capabilities and market expansion.

Funding Rounds

Series A - $24.5 million - 2025-04-25

Reducto Inc’s Series A round, led by Benchmark, raised $24.5 million to accelerate company growth. The funds are being used to enhance Reducto’s parsing pipeline technology and expand their product capabilities, enabling more enterprises to unlock unstructured data end-to-end.

Seed - $8.4 million - 2024-10-02

Reducto Inc’s Seed funding round brought in $8.4 million led by First Round Capital. The round focused on enabling large language models to read documents the way humans do, advancing reliable data ingestion pipelines and preparing human data for LLM workflows.

Key Investors

Benchmark

Benchmark is a leading venture capital firm that led Reducto Inc’s Series A round. Their investment is instrumental in scaling Reducto’s technology and targeting growth within enterprise AI applications.

Y Combinator

Y Combinator is an influential startup accelerator and investor supporting Reducto Inc’s growth. Their backing provides strategic guidance and network access critical for early-stage AI ventures.

First Round Capital

First Round Capital led the Seed round for Reducto Inc, offering not just capital but also pivotal ecosystem support for the development of Reducto’s document-to-LLM platform.

BoxGroup

BoxGroup is an active early-stage investor contributing to Reducto Inc funding rounds. Their involvement furthers Reducto’s reach and accelerates product-market fit in the document processing space.

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Reducto Inc Funding & Investor Insights | AI Document Processing