Document intelligence startup Klarity Intelligence Inc. said today it has raised $70 million in new round of funding led by Nat Friedman and Daniel Gross.

Scale Venture Partners, Tola Capital, Picus Capital, Invus Capital and Y Combinator also participated. Today’s Series B round, which follows an $18 million investment in January 2022, brings the company’s total amount raised to more than $90 million, according to a report in The Information.

Like many startups raising big-money rounds these days, Klarity leans on generative artificial intelligence technology. It uses it to process the data in structured and unstructured documents such as contracts and internal records, so as to provide businesses with useful insights buried within them.

The company explains that even today, the vast majority of businesses are still plodding along with painful, repetitive and manual review processes when it comes to such documents. They employ armies of employees to sit and read documents to obtain the information they need for order processing, billing and revenue recognition. Those employees must then match the data in those documents to systems, and perform the necessary calculations and validations to balance the company’s accounts.

Klarity says this is a hugely laborious endeavor that gave birth to the $300 billion offshore industry, which sees many companies outsource tasks such as data entry to freelancers in countries such as India and the Philippines. Those companies now have an alternative in Klarity’s platform, which can automate document analysis and data entry using AI.

The company explains that its software-as-a-service platform automates the process of extracting information from documents, freeing workers from the most cumbersome aspects of their jobs. Klarity says its platform leverages cutting-edge natural language processing and computer vision models, as well as machine learning techniques, and can understand documents as well as any human can.

Klarity reckons it has seen significant traction since its last major funding round, adding customers such as DoorDash Inc. and CrowdStrike Holdings Inc. and providing them with benefits such as reduced operational expenses, real-time document processing and better compliance. As a result, their human teams have demonstrated “exponentially higher productivity” compared to those who still perform such tasks manually. That means its customers can invest more time and money in research and development and go-to-market operations.

The company said it will use the funds from today’s round to build out its teams across all major functions, with a focus on engineering, product and go-to-market efforts. Its long-term aims are to grow its customer base and accelerate the development of yet more tools that can automate business processes with human-like quality.

Co-founder and Chief Technology Officer Nischal Nadhamuni said the company’s decision to go all-in on generative AI has transformed its products. “We’ve achieved 85%-plus pass-through rates on document processing tasks and unlocked automation for processes that were previously only done by people,” he said.

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