CloudSEK sees 5-fold jump in valuation in $19 million fundraise round

Cybersecurity firm CloudSEK has raised $19 million in a fresh funding round from a clutch of investors at a five-fold increase in valuation to around $118 million (about Rs 1,000 crore) compared to its previous funding round, a top company official said.

CloudSEK Co-Founder and CEO Rahul Sasi told PTI that the company has raised fund after a period of three years, mainly to set up its operations in the United States.

"We have raised USD 19 million from some of the strategic investors after a period of about three years. In three years, our revenue has grown five times, and so has our valuation. We have raised funds at a valuation of around Rs 1,000 crore mainly to set up our US operations," Sasi said.

The round saw participation from a mix of India and US-based investors, such as MassMutual Ventures, Inflexor Ventures, Prana Ventures, Tenacity Ventures, and select strategic investors, including Commvault.

Meeran Family (founders of Eastern Group), StartupXSeed, Neon Fund and Exfinity Ventures are among CloudSEK's existing investors  "Our significant amount of revenue comes from America. We have been selected by a US delegation to set up a base in the US. This is the first time the US is calling and supporting an Indian cybersecurity firm to set up a base there with investment and other support. We build in India for cybersecurity problems which are global. With fresh funds, we plan to build a 100 people team in the US over the next 2-3 years," Sasi said.

CloudSEK claims to have around 100 member teams in India at present.

Sasi said CloudSEK is cashflow positive and close to profitability.

"We will also use the fund to develop AI-based cybersecurity models to protect systems. We will not compete with large language models but develop a model based on wisdom for cybersecurity-related problems," he said.