Security solutions startup Sequretek IT Solutions Pvt. Ltd has raised Rs 27 crore (approximately $3.7 million) in a bridge round of funding led by Mumbai-based venture capital firm Unicorn India Ventures, a top company executive told TechCircle.
Existing investors GVFL, earlier known as Gujarat Venture Finance Ltd, Sharad Sanghi, founder of data centre company Netmagic Solutions and a clutch of international investors also participated in the round, the person mentioned above said.
Sequretek plans to launch operations in North America because of the market opportunity there. The Mumbai-based startup will use the fresh capital raised to expand its business, launch new products and develop its go-to-market strategy in India and the US, Pankit Desai, co-founder and chief executive of Sequretek told TechCircle.
“India as a market is growing very fast for us and we will continue to work here. Having said that, the US is the largest security market with over 40% market share and is also a place where next generation companies can find their footing,” Desai said.
The company will have direct presence in the New York area and will set up a product support and research and development facility in Canada. The company also plans to hire some partners to expand its market reach in the United States, Desai added.
He also said that Sequretek will benchmark its products against international standards and has identified two premier benchmarking organisations, one each from the US and Europe, to run it.
“There’s already significant interest from potential partners to carry our offering as part of their portfolio. A combination of both these activities positions us well for the next phase of growth,” Desai explained.
Mumbai-based JR Laddha Financial Services Pvt. Ltd acted as the financial adviser to Sequretek for the transaction.
The firm last raised capital in May 2017 from Unicorn India Ventures and GVFL Ltd. In 2015, the company secured $300,000 from a clutch of investors.
It was founded in 2013 by Desai and Anand Naik. Before setting up Sequretek, Naik was the managing director at American security company Symantec for India and South Asia, while Desai worked in various roles at IT multinational firm Rolta India Ltd.
Sequretek develops security solutions for segments such as digital identity management, threat protection platform, security analytics and more, for enterprises in the financial, pharmaceutical, IT/ITES, retail and logistics sectors.
The company’s clients include HDFC Bank, IDBI Federal Life Insurance Company, mortgage lender HDFC Ltd and commodity bourse NCDEX.
Some companies operating in the cybersecurity space in India include Delhi-based Lucideus Tech Pvt. Ltd, which in May 2017 raised angel funding from a clutch of investors.
In April 2017, Innefu Labs Pvt. Ltd, which develops cybersecurity solutions using artificial intelligence, raised $2 million (Rs 13 crore) in its Series A round from IndiaNivesh Venture Capital Fund.
A report in Quartz in April this year found that the cybersecurity sector in India lacks the proper talent. The report said that the sector in India has more than 30,000 vacancies. The skills in demand include software development, engineering, analytics, risk auditing, forensics, network security and access management. Firms in IT, banking and retail are looking for such professionals.