Data breaches to spur cybersecurity funding

Cyber attacks can cause substantial financial losses for organizations

- Priyamvada C

Venture capital funds are ramping up their investments in the cybersecurity space in India, as cyber-attacks grow in frequency and as artificial intelligence technology promises to go mainstream in 2024.

Indian cybersecurity startups in the past two years amassed $130.7 million in funding, a nearly 63% jump from two years prior, according to data collected by Tracxn.

Potential security breaches and data thefts remain a lingering concern, as companies in India and around the globe embrace digital transformation and technological enhancements, prompting VC firms to invest proactively in cybersecurity providers.

VC firm Accel is currently investing out of its seventh fund, sized at $650 million, and has invested from this fund in five companies in the cybersecurity space, said Prayank Swaroop, partner at Accel.

"Cybersecurity is an important area of investment for us globally, and in India, we have significantly increased our number of investments in the last two years. This will continue to be a priority sector for 2024 as well," he said.