Reducto, a San Francisco-based AI document intelligence platform, announced it secured $75 million in a Series B funding round. The funding was led by Andreessen Horowitz and included participation from previous investors Benchmark, First Round Capital, BoxGroup and YCombinator.
Founded two years ago, Reducto combined traditional optical character recognition, or OCR, with modern Vision-Language Models, or VLMs, to develop a method for document understanding that enables systems to process documents similarly to a human. Its platform is intended to connect raw, real-world data with large language models to facilitate AI reasoning.
The new capital will be used to accelerate model research and product capabilities and to increase adoption across enterprise customers and AI teams. This raise follows the company’s $24.5 million Series A round from April 2025, bringing the total funding secured by Reducto to $108 million.
The company offers its capabilities through a developer-friendly API and Reducto Studio, an interactive workspace for building, evaluating and deploying data pipelines. Its customers include financial institutions and Fortune 10 enterprises, as well as AI-native startups such as Harvey, Rogo and Scale AI. Reducto also announced a new flexible pricing structure intended to lower barriers for startups and innovators and ensure access to the same infrastructure used by larger enterprises for early-stage teams.
