According to reports, Singapore government sovereign wealth fund Temasek’s subsidiary, Vertex Ventures, is set to lead a $50-60 million funding round in SpotDraft, an AI-enabled SaaS (Software-as-a-Service) firm specializing in contract management and legal agreements.

After the financing, SpotDraft is probably worth between $200 and $250 million. The company is also supported by its current investors, which include Prosus, Premji Invest, and Xeed Ventures, which was co-founded by Binny Bansal of Flipkart.

SpotDraft is a Bengaluru-based company that was founded in 2017 and provides an AI-powered contract automation platform to help companies generate, evaluate, and manage contracts. In essence, it seeks to simplify contract management procedures and lessen manual labor.

“Vertex has led the round, and investment has closed for all practical purposes,” as per reports.

Along with businesses like FirstCry, GlowRoad, and others, Vertex Ventures has made exits through acquisitions or initial public offerings (IPOs). It has also invested in Indian startups like Licious, KukuFM, and Pilgrim.

The company was valued at over $150 million before this, having received $26 million in March 2023. A total of $51 million has been raised by investors, including angel investors like Girish Mathrubootham, co-founder of Freshworks, and Blume Ventures and Arkam Ventures.

SpotDraft, which includes companies including Gameskraft, Headout, LambdaTest, SpenDflo, and others, was co-founded by Harvard Law alumnus Shashank Bijapur, Madhav Bhagat, and Rohith Salim. About one-fifth of its total sales came from India, although the US market accounts for the majority of its revenue.

According to Tracxn, the company's income more than doubled to Rs 47.1 crore in FY24, while its loss was constant at Rs 67.4 crore.

The market for contract management software is expanding significantly due to the growing need from businesses to improve efficiency and compliance while streamlining their contract procedures.

According to reports, the contract lifecycle management (CLM) software industry is expected to reach $12 billion globally by 2025.