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$33M later, Reducto is solving the problem no one talks about: unstructured data

May 29, 2025
in BUSINESS
$33M later, Reducto is solving the problem no one talks about: unstructured data

Adit Abraham

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In an age where companies are racing to build on top of large language models, there’s a hidden bottleneck that no one wants to talk about: unstructured documents.

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Adit Abraham, Co-founder and CEO of Reducto, saw the problem early. While everyone else was focused on training bigger models, he focused on cleaning the pipes—turning unsearchable PDFs, spreadsheets, and contracts into structured, LLM-ready data.

And in under two years, Reducto has quietly become the go-to infrastructure for AI-powered enterprises.

From YouTube PM to Document Intelligence Pioneer

Before launching Reducto, Abraham was a Product Manager at Google, leading major monetization and search growth initiatives at YouTube. But his obsession with solving real-world AI problems began earlier—at MIT Media Lab, where he researched machine learning and intelligent systems.

That research focus paid off. In 2023, he co-founded Reducto with a deceptively simple mission: parse complex documents into clean, structured data pipelines for LLMs.

Today, Reducto has processed over 250 million pages of unstructured data for clients like Scale AI, Vanta, and unnamed Fortune 10 companies.

The $32.9 Million Bet on Cleaning Up AI’s Mess

Most startups pitch a flashy new AI model. Reducto pitched something more essential: the middleware to make those models work in the real world.

That vision has raised eyebrows—and funding.

In 2024, Abraham closed an $8.4 million seed round, backed by heavyweights like the founders of Dropbox, Airtable, and PlanGrid. Just a year later, in 2025, he raised a $24.5 million Series A led by Benchmark, with participation from First Round Capital, BoxGroup, and Y Combinator.

Combined, the company has raised $32.9 million to date—and investors are betting big that Reducto becomes the data plumbing for the LLM economy.

90% Less Engineering Time. 100% More Accuracy.

Reducto isn’t just processing pages—it’s transforming enterprise workflows.

According to customer reports cited in First Round Review, clients have slashed engineering hours spent on chunking and parsing by up to 90%, accelerating everything from compliance automation to financial forecasting.

The key? Reducto doesn’t just extract data. It understands context, recognizes structure, and feeds it back into LLMs in a way that makes downstream tasks dramatically more effective.

It’s become indispensable for AI teams dealing with PDFs, Excel sheets, and legacy formats that typical models fumble through.

Reducto’s Next Chapter: Beyond Documents

On Twitter/X, Abraham recently hinted at Reducto’s next phase—a real-time data pipeline for AI agents and copilots. His most recent post teased a new product direction: enabling LLMs to query internal company documents in real-time, with high accuracy and zero hallucinations.

This evolution positions Reducto not just as a parser, but as a knowledge backbone for the next generation of AI applications.

Tags: AditAbrahamAIEngineeringAIStartupsEnterpriseAIFutureOfWorkLLMInfrastructureMITMediaLabPDFParsingReductoAIYCFounders

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