Certa is a company that automates compliance and procurement, allowing companies to onboard third parties 3x faster. Pulse 2.0 interviewed Certa founder and CEO Jag Lamba to learn more about the company.
Jag Lamba’s Background
Lamba is an MBA alumnus of The Wharton School of the University of Pennsylvania who spent ten years at McKinsey & Company before launching Certa. Previously, Lamba earned his Bachelor’s in Computer Science at the Pune Institute of Computer Technology.
Formation Of Certa
How did the idea for the company come together? Lamba was looking to solve the pain points felt by procurement teams when working with new third parties so that companies could do business with each other more easily and efficiently.
Favorite Memory
What has been your favorite memory working for the company so far? Lamba shared:
“One of my standout memories has to be from our Certa AI launch event in Austin this year. We had a dynamic mix of our devoted customers and intrigued prospects come together, all eager to see our AI capabilities firsthand. The energy in the room was palpable when we rolled out the live demos – it was our way of saying, ‘See, AI is not just a buzzword; it’s transformational technology in action!’ Their reactions were the affirmation we needed. Closing the event and diving into our team offsite reminded me that, at its core, our journey is about pioneering solutions with genuine camaraderie.”
Core Products
What are the company’s core products and features? Lamba explained:
“1.) Certa offers a flexible, intuitive operating system to manage third-party risk and compliance for enterprises. Certa provides solutions across Risk, Compliance,, and ESG.
2.) While the tool is primarily used by Procurement, Compliance, and Legal teams, Certa’s orchestration engine seamlessly brings in all the relevant stakeholders involved in a business process onto the platform, ensuring comprehensive collaboration and alignment across departments and functions.”
Challenges Faced
After asking Lamba about the challenges faced in building the company, he acknowledged:
“The industry in and of itself is facing many challenging bottlenecks that we’re working directly to solve.
1.) Staying ahead of regulatory shifts – As businesses expand their operations globally, the demand for comprehending and effectively handling compliance obligations from diverse regions and regulatory entities escalates. Each jurisdiction is accompanied by its unique set of regulations. For instance, the U.S. has the Uyghur Forced Labor Prevention Act (UFLPA), while Germany adheres to the German Supply Chain Act (LkSG). Navigating this intricate compliance terrain, particularly for multinational corporations, can be a daunting task.
2.) The ability to scale risk assessment – In the realm of third-party engagements, each partnership brings forth fresh risks that can significantly impact a business. Even a single adverse partnership has the potential for catastrophic consequences. These risks encompass a wide spectrum, including data privacy, financial, environmental, and regulatory concerns. If not actively and preemptively managed, these risks can result in substantial financial losses for a business, not to mention the detrimental effect on its reputation.
3.) Streamlining data consolidation and process orchestration – The task of collecting, centralizing, and standardizing data originating from diverse sources, each adhering to its unique format and standards, can pose significant challenges. In the context of enterprise-level organizations, third-party risk management often unfolds as a fragmented and labor-intensive endeavor. Data is isolated within various systems, spreadsheets, and email correspondence, leaving substantial gaps where risks can potentially be overlooked. Furthermore, the onboarding process at numerous firms has extended to a lengthy 3-6 month duration, adversely affecting the pace of their operations.”
Evolution Of Certa’s Technology
How has Certa’s technology evolved since launching? Lamba noted:
“One thing I’ve learned from leading Certa is that technology isn’t static; it’s ever-evolving. We’ve pivoted, iterated, and innovated based on customer feedback, new regulations (such as UFLPA) industry shocks (such as COVID-19), and technology foresight. From enhancing our platform’s integrative capabilities to introducing AI-driven solutions, our evolution mirrors the dynamic needs of our clients.”
Significant Milestones
What have been some of the company’s most significant milestones? Lamba cited:
“Each Certa solution, including our pre-designed options, is constructed upon the Certa platform, which serves as the digital foundation for companies when engaging with external parties. We empower companies not only to collaborate with vendors but also to foster partnerships and often, engage with their clients. Our software facilitates the management of interactions with every entity a company engages with, offering a highly efficient and automated approach. The key distinguishing feature lies in everything being built on Certa’s Third Party Operating System (OS). This ensures seamless integration and compatibility across all modules, saving considerable time and effort. It boasts a user-friendly interface with comprehensive features encompassing risk assessment, compliance monitoring, and ESG considerations.”
Customer Success Stories
After asking Lamba about customer success stories, he cited Uber in the infographic below:
Funding
When asking Lamba about the company’s funding information, he revealed:
“All of the Series B is equity (none of it is debt) because we wanted additional partners to join us on the journey. We have a standard Series B valuation for a round of this size, and we raised just over $50M total. There is a wealth of talent out there and no dearth in client demand. We want to take advantage of our fortunate situation of being an emerging category leader to grow our presence in the US and in Europe; additionally, Certa will add more generative AI capabilities and ESG solutions and add to our existing Procurement and Compliance solution suites to help all businesses better manage their third parties.”
Total Addressable Market
What total addressable market (TAM) size is the company pursuing? Lamba assessed:
“The Third Party Risk Management (TPRM) market is expected to grow 16% year-over-year to $8 billion by 2025.”
Differentiation From The Competition
What differentiates the company from its competition? Lamba affirmed:
1.) Firstly, Certa’s scope is incredibly comprehensive. We encompass all risk factors, compliance requirements, and ESG considerations on a global scale. Our track record of success with multiple Fortune 100 and Fortune 500 companies attests to our global-native platform, supporting 42 languages and addressing compliance intricacies worldwide. In terms of comprehensiveness, there is no match for Certa.
2.) Secondly, we cater to some of the world’s largest enterprises, necessitating a high degree of personalization. To meet this demand, we’ve developed a fully-fledged no-code studio that offers unparalleled configurability. This adaptability is especially valuable for large corporations, ensuring a smooth deployment of Certa without encountering implementation challenges due to its exceptional flexibility.
3.) Lastly, Certa adopts an open approach to addressing the challenges at hand. We’ve already established 120 integrations and built a comprehensive middleware layer, enabling companies to seamlessly incorporate new integrations without the need for coding. Our mindset revolves around coordinating and orchestrating not only stakeholders and global vendors but also all the necessary systems and data sources. This approach ensures secure, efficient, and rapid collaboration with third parties.
Future Company Goals
What are some of the company’s future company goals? Lamba concluded:
“Our goals for the future are straightforward: we aim to facilitate seamless cross-border collaboration for companies, regardless of their size or reputation. Our vision is to enable them to work efficiently and swiftly, leveling the playing field. Our goal is to establish a strategic advantage by enhancing the agility and simplicity of their interactions with third parties. While ensuring the company’s security remains paramount, we also aspire to create a system that transforms these relationships into much more than mere transactions.”
