Full-Time
Updated on 9/4/2026
Ingests data for LLMs and RAG
$150k - $180k/yr
San Francisco, CA, USA
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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.
Company Size
51-200
Company Stage
Series B
Total Funding
$108M
Headquarters
San Francisco, California
Founded
2023
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Unlimited Paid Time Off
Wellness Program
Parental Leave
Reducto has launched r-1, a document parsing model that converts complex PDFs, scans, and spreadsheets into structured data for AI systems at 1¢ per page. The company says r-1 reduces parsing errors by up to 20% compared with existing tools whilst costing up to six times less than multi-tool alternatives. The model handles documents where meaning is encoded in tables, handwriting, formatting, and layout. It combines layout detection, reading order, tables, formatting, and citations in a single model, eliminating the need for multiple tools. Reducto is offering up to $5,000 in credits for organisations to test r-1 on difficult documents. The company has raised more than $108 million from investors including Andreessen Horowitz and First Round Capital, processing over a billion pages monthly.
DokuBrain, an intelligent document processing platform, has positioned itself as a comprehensive alternative to Reducto, which recently raised $108 million from Andreessen Horowitz. Whilst Reducto excels at parsing complex PDFs into LLM-ready JSON for AI pipelines, it lacks business user interfaces, workflow automation and governance features. DokuBrain offers document classification across 16+ types, hybrid search capabilities, RAG Q&A with citations, PII detection and audit trails. The platform includes both API access and a business user interface, addressing needs beyond pure parsing. It's self-hostable and targets SMBs in finance, legal and operations sectors. Other alternatives include LlamaParse for RAG-focused pipelines within the LlamaIndex ecosystem, and Nanonets for finance-specific document workflows. Reducto's credit-based pricing starts at $300 monthly for parsing, but costs can exceed $2,000 for high-volume processing.
Reducto has acquired AI learning platform Opennote to expand its document intelligence capabilities, the companies announced this week. Financial terms were not disclosed. Founded in 2023, Reducto develops tools combining optical character recognition with vision-language models to convert unstructured files into AI-readable data. The company raised $75 million in a Series B round led by Andreessen Horowitz last year, bringing total funding to over $100 million. Opennote, launched earlier this year, offered AI-powered learning tools for students, including personalised tutoring and note organisation. The platform had attracted over 50,000 users. The acquisition strengthens Reducto's work on "document agents", AI systems designed to interpret and act on large volumes of unstructured information. The Opennote team will join immediately to develop products focused on extraction and AI workflow integration.
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.
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.