StartupXseed’s second fund makes debut bet on authentication startup SAWO Labs

By Narinder Kapur

  • 03 Dec 2020
Prabhat Sahu, Founder and CEO, SAWO Labs

SAWO Labs Pvt Ltd, an authentication-focussed startup, has raised Rs 5.5 crore (about $746,000) in a seed fundraising round.

The round in Thane-based SAWO Labs has been led by StartupXseed, a business-to-business early-stage investor whose other portfolio companies include Bellatrix Aerospace and Steradian Semi.

The investment in SAWO Labs is also StartupXseed’s first bet from its second fund, co-founding partner Ravi Thakur said. According to its website, the firm is a sector-agnostic investor that provides companies with strategic support including market access, mentorship, and corporate governance advisory.

Vasan & Sampath LLP acted as the exclusive strategic adviser to SAWO Labs on the transaction.

Prior to this, the company raised an undisclosed sum from 100x.VC in September in pre-seed funding. This latest infusion takes its valuation to Rs 28 crore (nearly $3.8 million), it said in a statement.

SAWO Labs was set up by Prabhat Sahu. The company’s first name is an acronym for ‘Secure Authentication Without OTP’. Its platform leverages protocols such as Secured Sockets Layer of Mongo DB and Fast Identity Online to simplify user verification processes across different channels.

It will use the capital it has raised to strengthen its product portfolio as well as develop indigenous tools for use cases such as consumer onboarding. It will also enhance its cloud infrastructure and build out its team and increase marketing outreach.

StartupXseed managing partner BV Naidu said the startup also has the potential of becoming a global solutions provider.

SAWO Labs claims its platform brings down the cost of authentication to a quarter of what businesses currently incur, and that it has already onboarded some big companies as customers.