NEW DELHI : Indian cybersecurity firms are capitalizing on a covid-induced surge in demand fuelled by a sharp rise in cyber attacks.
This has also boosted revenues of companies and driving investor interest in cybersecurity startups. The market growth is led by increased use of technology among small and medium enterprises (SMEs) and even governments.
For instance, Pune-based cybersecurity firm Quick Heal Technologies clocked 49% growth in revenue in the enterprise and government segment in the June quarter to ₹21.6 crore from ₹14.5 crore in Q1 FY2022. Meanwhile, Chennai-based K7 Computing said its revenue doubled in the last 12 months. Though their clientele includes large enterprises, cybersecurity firms are seeing increased interest from SMEs, especially after covid that has spurred a shift towards digitalization globally. They have also seen interest from Europe and North America though India remains their biggest market. Kailash Katkar, managing director and chief executive officer, Quick Heal, said Europe and the Asia Pacific are leading the firm’s international growth, while K7 Computing is seeing traction in the Middle East and Southeast Asia, said J Kesavardhanan, founder and president.
“Majority of SMEs have faced cyber attacks in one way or the other. Now, they understand the criticality of the cyber component. Hence, the adoption has increased,” said Karmesh Gupta, co-founder, and CEO of WiJungle, a Gurugram-based cybersecurity firm.
As per an August report from the International Data Corporation (IDC), 74% of large enterprises in India have increased spending on cybersecurity. Government, banking, and healthcare are among sectors where spending has grown. Healthcare and education sectors have contributed significantly to the growth of cybersecurity firms, according to Kesavardhanan.
Sujit Patel, MD and CEO of Mumbai-based cybersecurity and IT firm SCS Tech said the company saw a 40% rise in demand for enterprise-level IT infra, cybersecurity, and data analytics in government and public sector undertakings (PSUs) in the last two years.
The booming market is attracting investor attention. According to investment tracking firm Tracxn, cybersecurity startups in India raised $67.2 million over 24 deals between September 2021 and August 2022, compared to $27.9 million raised between September 2020 and August 2021.
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