Legal platform, Rulezero, on Monday said it has raised Rs10 crore in seed funding led by Zerodha-backed startup incubator, Rainmatter Capital, as it looks to enhance its technology and increase customer deployments.
The round also saw participation from Infosys co-founder, Kris Gopalakrishnan, IndusLaw, and Reddy Futures LLP, among others.
The two-year-old startup offers equity management software to private invested companies, investors, investment bankers, lawyers and company secretaries. Its flagship product, Hissa, manages ownership data of the company, automates share issuance processes and helps in employee benefit plan (ESOP) creation.
The platform also equips management with mechanisms to track and certify cap tables and manage transactions.
Ownership data of a company on the platform includes security instruments such as equity and equity-linked securities and debentures.
“Manual processes, limited number of skilled professionals and the absence of a single source of truth has resulted in private companies suffering from compliance issues, limited liquidity, high financing costs and delays. RuleZero is solving this problem by building an intelligent platform that enables stakeholder participation and capital flow in a transparent, efficient and compliant manner,” said Srinivas Katta, co-founder RuleZero.
RuleZero’s Hissa also acts as a marketplace connecting customers to other legal service providers.
“At Rainmatter, we are constantly looking out for innovative tech companies that are working on enabling and encouraging financial transactions. Rulezero is a platform that automates various manual tasks and paperwork involved in private investments and facilitates such transactions,” said Nithin Kamath, founder and chief executive officer (CEO) at Zerodha.
RuleZero was co-founded by Katta and Satish Mugulavalli. While Katta is one of the founding partners of IndusLaw, an Indian multi-speciality law firm; Mugulavalli is a technology entrepreneur and was most recently a partner at YourNest Venture Capital, a deep-tech investment firm.
“We are excited to back RuleZero as they are disrupting the manual processes in transactions. By automating and standardizing compliance, data flows and contracts between founders, investors and other parties, they will speed up the innovation cycle; freeing up the founding team’s time from administration, data checks and negotiation to run their business,” said Kris Gopalakrishnan, founder, Infosys.
RuleZero will also venture into enabling and providing liquidity and enabling secondary transactions of unlisted securities in a compliant manner, the company said in a statement.
