
Indian cybersecurity startups attract capital amid growing market potential to counter AI-driven threats
Subscribe to enjoy similar stories. Cybersecurity startups in India have attracted capital in the past couple of months, indicating that the sector might be on its way to maturing, led by the growth of new threats brought about by advancements in artificial intelligence. In addition, foreign cybersecurity firms are opening shop here or expanding their offerings in a market that is poised for growth.
At least nine cybersecurity startups have raised funding since August last year, according to startup data intelligence platform Tracxn. Six were seed rounds and three were Series-A. Equal, an identity management platform, raised the most at $10 million, followed by Protectt.ai, a mobile app security platform at $8.7 million, and Astra, a cloud-based penetrating testing platform at $2.7 million.
The investors included high-profile firms Blume Ventures and Bessemer Venture Partners. “Till 2023, cybersecurity was considered a cost centre as the AI space was still maturing," said Munish Vaid, vice president (digital transformation & technology) at Primus Partners India. “It was considered a backroom IT function.
It's not the case any longer. Now it’s a priority for companies." Indian companies are expected to spend $3.3 billion this year on network security, security services and security software, a 16.4% uptick from the year prior, according to a Gartner forecast. The highest growth in spending is expected on security services, at $1.6 billion.
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