Dili raises $22 million Series A to automate prevailing wage compliance

The AI compliance startup says it has processed over $1.4 billion in wages across 700-plus projects and is expanding into broader audit and waste detection work.

Summary

Dili, an AI-powered compliance startup founded by former Coinbase employees Anand Chaturvedi and Brian Fernandez, said it has raised $21.7 million in total funding, including a $15 million Series A led by Khosla Ventures. Allianz, Rebel Fund, Brick and Mortar Ventures' Darren Bechtel, and Y Combinator's Garry Tan participated. The company sells software for prevailing wage, apprenticeship and Davis-Bacon compliance in energy, infrastructure, construction and advanced manufacturing. Dili says its platform has processed more than $1.4 billion in wages, 5.2 million labor hours and nearly 16,000 certified payroll reports across more than 700 projects, while protecting over $1 billion in funding from fines, clawbacks and lost investment credits. The pitch is that compliance work traditionally handled through periodic sampling by large audit and consulting firms can be automated continuously. Dili says it reviews 100% of project data in real time, reducing review time from more than seven hours to under five minutes a week per organization. It also said it identified $6 million in IRS penalty exposure for one customer before it became a liability and has caught or prevented more than $50 million in fines and clawbacks across its customer base. The new capital will fund hiring across engineering, product and go-to-market as Dili broadens its scope beyond prevailing wage and apprenticeship checks into wider audit and waste detection work that is often outsourced to Big Four consultants. Customers include EDF, Radiance, Heelstone and Borea.

Terms & Concepts
  • Davis-Bacon compliance: Adhering to U.S. federal labor rules that require prevailing wages on certain public works projects.
  • certified payroll reports: Detailed payroll filings used to document worker pay and labor-law compliance on regulated projects.
  • prevailing wage: A minimum wage rate set for workers on government-linked construction projects in a given area.