Cybersecurity startup Kratikal raises pre-Series A funding

By Narinder Kapur

  • 04 Dec 2019
Credit: 123RF.com

Kratikal Tech Pvt. Ltd, which operates an eponymous end-to-end cybersecurity startup, has raised $1 million (approximately Rs 7.16 crore at current exchange rates) in its pre-Series A funding round.

The investment was led by Gilda VC, a Dubai-based cross-country fundraising platform for early-stage companies; Art Venture, which is owned by The Three Sisters: Institutional Office; and former JM Financial Services Ltd chief executive director and managing director Rajeev Chitrabhanu, Kratikal said in a statement.

Other investors that participated in the round include Madhusudan Gopinath, Shangrila Infotech LLP, Equentia Natural Resources, Artha Ventures, and LetsVenture.

The Noida- and Atlanta-based startup said it will use the funds to streamline its product development and deployment and invest in marketing and filed merchandising initiatives.

It will also use the funding to augment its business expansion, scale up its workforce, improve its technological infrastructure.

Kratikal said the partnership with Gilda VC would help it access opportunities in the Middle East, while the investment from Art Venture would help it expand its services in the banking, financial services, and insurance (BFSI) segment.

Pavan Kushwaha, chief executive officer at Kratikal, said the latest funding underlines the strength of a firm’s product innovation capabilities, robust unit economics, and deep cybersecurity expertise.

Separately, Chitrabhanu said he was confident in his investment because of Kratikal being well-positioned to take advantage of the growing need and push towards cybersecurity. It was also one of the few cybersecurity companies to have achieved even cashflows in a short span since its operational launch, he said.

Kratikal was founded by Pavan Kushwaha, Paratosh Bansal and Dip Jung Thapa in 2013. The startup says it has launched several cybersecurity-focused solutions including ThreatCop, an artificial intelligence and machine learning-based simulation product that is designed for employee risk assessment. Other products include KDMARC, an email authentication and anti-spoofing tool.

The firm has worked with over 100 clients, including Kotak Mahindra Bank, Aditya Birla Capital, Himalaya Wellness, PVR Cinemas, Fortis Healthcare, and Cars24.

Deals in the cybersecurity segment

The cybersecurity has seen no shortage of investor and strategic interest, especially as startups have begun employing frontier technologies such as artificial intelligence and machine learning to be able to adapt to consumer and enterprise needs.

Earlier today, Lucideus Inc., which operates an eponymous startup focussed on providing cybersecurity solutions for companies, raised $7 million (approximately Rs 50.18 crore) from investors including the venture capital arm of Japan’s MS&AD Insurance Group Holdings and the US-based Western Technology Investment.

Last month, SafeHouse Technologies Ltd, a startup focussed on mobile-first cybersecurity, raised $2.2 million (approximately Rs 15.55 crore) in a seed funding round led by Barclays UK Ventures, the venture capital business unit of British multinational financial services group Barclays.

In June, software engineering and services provider Cyient invested in Israeli rail cybersecurity firm Cylus Ltd, which was in line with its strategy of developing mobility solutions.

Prior to that, in March, the National Stock Exchange subsidiary NSEIT Ltd acquired security company Aujas Networks Pvt. Ltd to bolster its IT security offerings.