Klarity Intelligence Secures $70 Million in Funding to Revolutionize Document Review with AI

Klarity Intelligence Inc., a pioneering firm in the realm of document intelligence, announced today that it has successfully secured a substantial $70 million in a new funding round. This round was led by Nat Friedman and Daniel Gross, marking a significant milestone in the company's growth.

This Series B funding round comes after an initial $18 million investment in January 2022, elevating the total capital raised by Klarity to over $90 million, as reported by The Information.

In an era where numerous startups are securing large-scale investments, Klarity distinguishes itself by utilizing generative artificial intelligence technology. This advanced technology is applied to analyze data within both structured and unstructured documents, such as contracts and internal records, aiming to unearth valuable insights that are otherwise obscured.

According to Klarity, the majority of businesses today are still entrenched in cumbersome, repetitive, and manual document review processes. These processes typically involve significant manpower with employees tasked to pore over documents to extract necessary information for order processing, billing, and revenue recognition. These employees are further required to align the data extracted from these documents with existing systems and carry out the essential calculations and validations to maintain the company’s financial integrity.

Klarity notes that this labor-intensive process has been a major factor behind the rise of the $300 billion offshore outsourcing industry, which often sees tasks such as data entry being outsourced to freelancers in countries like India and the Philippines. However, Klarity offers a compelling alternative with its platform that can automate the task of document analysis and data entry using AI.

The company’s software-as-a-service (SaaS) platform is designed to automate the extraction of information from documents, liberating employees from the most taxing aspects of their jobs. Klarity asserts that its platform employs state-of-the-art natural language processing and computer vision models, along with machine learning techniques, enabling it to comprehend documents with the same proficiency as humans.

Since its last major funding round, Klarity has gained considerable traction, adding notable customers such as DoorDash Inc. and CrowdStrike Holdings Inc.. The platform has provided these companies with significant benefits, including reduced operational costs, real-time document processing, and enhanced compliance. Consequently, the productivity levels of human teams working with Klarity’s AI-powered solutions have seen "exponentially higher productivity" compared to those who still engage in manual tasks. This efficiency gain allows companies to reallocate resources to more strategic activities like research and development and market expansion.

Klarity intends to use the newly acquired funds to expand its teams across all major functions, particularly focusing on engineering, product development, and go-to-market strategies. The long-term objectives include growing the customer base and accelerating the creation of additional tools that can automate business processes with nearly human-like accuracy.

Nischal Nadhamuni, co-founder and Chief Technology Officer of Klarity, shared insights into the transformative impact of their commitment to generative AI: “We’ve achieved 85%-plus pass-through rates on document processing tasks and unlocked automation for processes that were previously only done by people.” This statement underscores the significant strides Klarity has made in redefining the landscape of document processing through automation.