Risk management in business: Third-party management platform, Certa, which helps Fortune 500 firms with global third-party compliance, risk management, and ESG, on Friday announced 2x oversubscribed Series B round of $35 million led by Fin Capital, and Vertex Ventures Southeast Asia and India, with participation from Tru Arrow Partners. Existing investors Point72 Ventures, BDMI, which is part of Bertelsmann’s corporate venture arm Bertelsmann Investments, the family office of Bernard Arnault’s Aglae Ventures, Mantis VC, and GOAT Capital also participated in the round. The latest round brought the total institutional investment in Certa to $50 million so far.
The company said it will use the funding to enhance its go-to-market engine, expand into new markets such as the EU and accelerate adoption.
“This investment in a tough economic environment underscores the demand for a more complete, modern solution to manage third-party relationships,” said Jag Lamba, founder and CEO of Certa. “It is a testament to Certa’s best in class technology and the value we have delivered to clients, many of whom are large Fortune 500 companies. We are energized by the faith put in us by our rockstar investors and believe Certa is poised to be a next-gen category leader in third-party management.”
As companies today become interconnected with different organisations around ecosystem of suppliers, partners, and clients globally, it also adds to the growing risk around data security, privacy, and fraud other than dealing with more compliances and working on areas around Environmental, Social, and Governance (ESG) goals.
Certa taps into the organisations’ need for a competitive edge based on their ability to work with third parties efficiently and safely.
“Existing systems at best offer point solutions which are often a pain to integrate, struggle to manage interconnected risks, and third-party data ends up siloed across multiple systems. Certa provides the most comprehensive and intelligent platform for global third-party management across procurement, compliance, ESG, and legal,” the company said.
“Certa’s technology stack makes it the best command center for large organizations as they look to scale globally, and we have been very impressed by Jag and the team’s commitment to this space,” said Piyush Kharbanda, General Partner at Vertex Ventures Southeast Asia and India.
The global third-party risk management market is expected to grow at a compound annual growth rate of 14.7 per cent from $5 billion in 2022 to $19.7 billion by 2032 on the back of rising cyber attacks and data theft along with advanced data warfare forcing companies to add layers to their security by adopting advanced technologies like third-party risk management solutions, according to market research firm Future Market Insights.