Funding in cyber security startups in India has seen an exponential increase in the last five years as the risk of cyber attacks increases leading to focus on data privacy and more awareness, say industry players. This has made many venture capital (VC) firms focus on startups in the cyber security as enterprises are beginning to put in place infrastructure to protect themselves from cyber attacks.
According to the data provided by startup tracker Tracxn, the number of cyber security startups founded in 2016 was 30, a 50 per cent jump compared 2012 when it was 15. Investments during the period saw an exponential jump as well, from $1 million during 2012 to $67 million in 2016. Investments in 2017 stood at $100 million.
Network Intelligence, a cyber security firm, recently got a funding of $4.8 million from PE firm Helix Investments. Hyderabad-based firm Ensurity Technologies is in talks with VCs to raise funding for its expansion plans. According to a venture capitalist, the firm is currently funding four startups in the security space given the high level of relevance they have right now. India was one of the worst-hit countries by the WannaCry ransomware affecting sectors such as banking, finance and manufacturing last year.
According to the information provided by the Indian Computer Emergency Response Team (CERT-In), two lakh cyber security incidents were noted between 2014 and 2017. Over a period, the nature and pattern of incidents are becoming more sophisticated and complex. The types of cyber security incidents include phishing, scanning/probing and virus/malicious code. Amit Mathur, Chief Operating Officer, Ensurity Technologies, agreed that market for cyber security services is increasing as the risk of cyber attacks is on the rise. “But, India is slow in its adoption,” Mathur said. The company is working with banks for its integrated payments system and also looking to expand overseas.