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Business News/ Technology / News/  Cybersecurity firms reap demand surge

Cybersecurity firms reap demand surge

As per an August report from the IDC, 74% of large enterprises in India have increased spending on cybersecurity

The market growth is being led by SMEs. istockPremium
The market growth is being led by SMEs. istock

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.

Most Indian security firms offer antivirus solutions for consumers and enterprises. Many of these firms are also offering solutions for network security and threat management. WiJungle saw the highest traction for its unified network security platform. Such platforms allow enterprises to manage their entire network from a single security console. Quick Heal is seeing a lot of interest in its endpoint security and zero trust.

“Indian security services companies are offering self-services models with value added, network-based security solutions and secure transformational services to existing customers," said Rama Vedashree, CEO of Data Security Council of India (DSCI).

Vedashree pointed out that Indian firms have also been strengthening existing offerings by leveraging artificial intelligence (AI), machine learning (ML), robotic process automation (RPA), Blockchain and cloud.

Quick Heal’s Katkar said that to ease adoption for companies looking to cut spending amid global economic concerns, the firm offers partner plans and flexible deal structures.

Indian firms are also expanding to new markets and growing their workforce. For instance, K7 Computing has increased its headcount by 30% to reach 375 over the last one year, while WiJungle aims to grow from around 100 employees now to over 125 by the end of the year.

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Abhijit Ahaskar
Abhijit writes on tech policy, gaming, security, AI, robotics, electronics and startups. He has been in the media industry for over 12 years.
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Published: 13 Sep 2022, 01:21 AM IST
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