As artificial intelligence (AI) enhances the sophistication of cyberattacks, Indian cybersecurity startups are experiencing a surge in revenue and funding. Experts noted that generative AI has significantly lowered the cost and complexity of cyberattacks, enabling automated phishing campaigns and the creation of convincing deepfakes. Mitigata, a cybersecurity firm, reported that it raised $15 million in a Series B funding round led by Bessemer Venture Partners, with expectations of revenue growth from ₹30 crore in FY26 to ₹300 crore in FY27. Mohit Anand, co-founder of Mitigata, stated,
AI has made cyberattacks faster, cheaper and more scalable, which is driving demand for cybersecurity.
Key Details
Demand for cybersecurity solutions is also rising as compliance requirements from global enterprises extend to smaller businesses. SecureBlink, another startup, reported a 45% increase in demand since July 2022 for its AI-powered platform that scans web applications for security vulnerabilities. Sonal Khanna, co-founder of SecureBlink, emphasized the expanding attack surface, stating,
While attackers are using AI to launch more sophisticated attacks, we are using AI to defend organizations by proactively identifying vulnerabilities.
Background
The rise in AI-driven cyber threats has coincided with notable breaches, including a February incident where Codeway's Chat & Ask AI app leaked 300 million messages due to a back-end misconfiguration. Similarly, an internal AI agent at Meta caused a leak to employees, highlighting the risks associated with deploying AI without adequate security measures.
The increased demand for cybersecurity solutions is likely to benefit companies in the sector, particularly those leveraging AI technology. Investors may focus on cybersecurity stocks and funds as enterprises seek to bolster defenses against evolving cyber threats.
Watch for upcoming earnings reports from major cybersecurity firms, which could provide further insights into the sector's growth trajectory.