Reducto

Reducto

Ingests data for LLMs and RAG

About Reducto

Simplify's Rating
Why Reducto is rated
B-
Rated B on Competitive Edge
Rated B on Growth Potential
Rated C on Differentiation

Industries

Data & Analytics

Enterprise Software

AI & Machine Learning

Company Size

51-200

Company Stage

Series B

Total Funding

$108M

Headquarters

San Francisco, California

Founded

2023

Overview

Reducto.ai helps large organizations handle big volumes of data by ingesting, parsing, and chunking documents so that information is easy to retrieve with large language models. Its system breaks down complex documents into meaningful chunks and extracts structured data, making it easier to feed relevant content into retrieval-augmented generation workflows that work with any vector database. The product works by processing pages, applying layout-based chunking and data extraction, and delivering organized content ready for LLM queries, with options for automatic feature parsing as an add-on. The company differentiates itself by offering enterprise-grade, scalable data processing with dedicated compute resources and tiered subscription plans based on page volumes, plus value-added features for large workloads. The goal is to help businesses improve RAG performance and decision-making by turning vast document collections into searchable, usable data.

Significant Headcount Growth
YC Company
Simplify Jobs

Simplify's Take

What believers are saying

  • Processes one billion pages monthly for Harvey, Scale AI, and Fortune 10 enterprises.
  • Opennote acquisition in 2026 bolsters document agents for enterprise workflows.
  • $75M Series B from Andreessen Horowitz in 2025 fuels model research and scaling.

What critics are saying

  • Unistrap and LlamaParse price at $0.005-$0.01 per page, compressing Reducto's margins.
  • OpenAI GPT-5 parsing API launched February 2026 bypasses Reducto for RAG pipelines.
  • Google Document AI v3 bundles free parsing since January 2026, commoditizing core value.

What makes Reducto unique

  • MIT founders built vision models reading documents like humans using VLMs and OCR.
  • Deep Extract agent verifies extractions iteratively to 99-100% accuracy on 2,500-page docs.
  • API edits forms, fills tables, and provides bounding boxes for audit trails.

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Funding

Total Funding

$108M

Above

Industry Average

Funded Over

4 Rounds

Series B funding is typically for startups that have proven their business model and need more funding to expand rapidly—often by entering new markets or adding more products. Investors are usually venture capital firms that specialize in later-stage investments.
Series B Funding Comparison
Above Average

Industry standards

$35M
$45M
Linktree
$65M
Substack
$75M
Reducto
$100M
ClickUp

Benefits

Health Insurance

Dental Insurance

Vision Insurance

Unlimited Paid Time Off

Wellness Program

Parental Leave

Growth & Insights and Company News

Headcount

6 month growth

-1%

1 year growth

6%

2 year growth

-8%
FinSMEs
Oct 14th, 2025
Reducto Raises $75M in Series B Funding

Reducto raises $75M in Series B funding. Reducto, a San Francisco, CA-based AI document intelligence platform, raised $75M in Series B funding round. The round, which brought Reducto's total funding to date to $108M. was led by Andreessen Horowitz, with participation from existing investors Benchmark, First Round Capital, BoxGroup, and YCombinator. The company intends to use the funds to accelerate development across model research and product capabilities, and scale adoption across both enterprise and the next generation of AI teams. Led by Adit Abraham, co-founder and CEO, and Raunak Chowdhuri, co-founder and CTO, Reducto is a solution for turning complex documents into AI-ready inputs. Since its founding two years ago, the company has advanced a new standard for document understanding by combining traditional optical character recognition (OCR) with modern Vision-Language Models (VLMs), enabling systems to read documents as a human would. Customers range from AI-native startups, including Harvey, Rogo, and Scale AI, to global financial institutions and Fortune 10 enterprises. These companies use it to handle their most complex and mission-critical document workflow, such as, converting pdfs with redlines to text in legal workflows, extracting complex charts for financial due diligence, or high-stakes figure extraction for healthcare decisions.

The Information
Oct 14th, 2025
Reducto AI Secures New Funding Round

Reducto, a startup integrating OCR with advanced AI to interpret documents, has secured new funding. This investment comes just six months after a previous round, highlighting the company's rapid growth and innovation in document data translation.

Just AI News
Oct 14th, 2025
Reducto Secures $75M Led by Andreessen Horowitz

Reducto secures $75M led by Andreessen Horowitz. * Reducto secured $75M Series B led by Andreessen Horowitz, bringing total funding to $108M in under one year. * The AI document intelligence platform processes nearly one billion pages monthly for Harvey, Rogo, Scale AI, and Fortune 10 enterprises. * Andreessen Horowitz led the round with Benchmark, First Round Capital, BoxGroup, and YCombinator participating as existing investors.

Benzinga
Oct 14th, 2025
Reducto AI Secures $75M Series B Funding

Reducto, an AI document intelligence platform, raised a $75 million Series B round led by Andreessen Horowitz, bringing total funding to $108 million. The company, founded two years ago, combines OCR with Vision-Language Models to enhance document understanding. Reducto's platform processes nearly a billion pages monthly for clients like Scale AI and Fortune 10 enterprises. The new funding will accelerate model research and product development, expanding adoption across enterprises and AI teams.

The American Bazaar
Apr 29th, 2025
Document extraction startup Reducto raises $24.5 million in funding

Reducto has also launched two key improvements - a new agentic OCR framework, which automatically reviews Reducto's outputs, catching mistakes and making corrections through a multi-pass VLM framework, similar to having a human in the loop, and smart cost savings for simpler pages.

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