How SpotDraft is Scaling On-Device Contract AI

SpotDraft, an end-to-end contract automation platform for cutting-edge companies, led by Shashank Bijapur, Madhav Bhagat, Akshay Verma, Alon Waks, Amit Sharma, and others, has raised $8 million from Qualcomm Ventures in a strategic Series B extension to scale its on-device contract review tech for regulated legal workflows.

The extension values SpotDraft at around $380 million, the startup told TechCrunch, nearly double its $190 million post-money valuation following its $56 million Series B in February of last year.

Enterprises in regulated sectors are testing generative AI, but privacy, security, and data governance concerns continue to limit adoption for sensitive workflows, particularly in legal. To address this, SpotDraft is developing on-device architectures that keep contract intelligence local rather than in the cloud. At Qualcomm’s Snapdragon Summit 2025, SpotDraft demonstrated offline contract review, risk scoring, and redlining on Snapdragon X Elite laptops, with cloud connectivity required only for authentication and collaboration features.

SpotDraft positions legal workflows as a key early use case for on-device enterprise AI, citing privacy, security, and compliance constraints that limit cloud-based processing of sensitive contracts. The company’s VerifAI system is designed to run close to the document, applying organizational playbooks and policies directly within Microsoft Word to support contract review and recommendations in existing legal workflows.

Demand for on-device AI is strongest in regulated sectors such as defense and pharma, where security and data residency constraints limit cloud use. On-device models are approaching cloud performance, with roughly a 5% evaluation gap and faster response times on newer chips. SpotDraft reports over 700 customers, more than 1 million contracts processed annually, 173% contract volume growth, nearly 50,000 monthly active users, and expects 100% revenue growth in 2026 following strong growth in 2024 and 2025.

SpotDraft plans to use the new funding to strengthen its AI-driven product suite and expand enterprise sales across the Americas, EMEA, and India. Qualcomm’s role goes beyond capital, with joint development and go-to-market collaboration focused on on-device AI deployments. On-device workflows are currently limited to select customers but are expected to scale as AI PCs become more widely available.

The company has more than 300 employees globally, with a small presence in the U.S. and UK, and the majority of staff based in Bengaluru. SpotDraft has raised a total of $92 million to date, backed by investors including Vertex Growth Singapore, Trident Growth Partners, Xeed VC, Arkam Ventures, Prosus Ventures, and Qualcomm Ventures.