India’s cybersecurity landscape is undergoing a significant shift, moving beyond traditional services-led models towards innovative, product-led platforms designed for both domestic and global markets. This evolution is fueled by increasing digitization, the growing sophistication of AI-driven threats, and the implementation of new data protection regulations like the Digital Personal Data Protection (DPDP) Act.
Currently, India boasts over 400 cybersecurity product companies, a sector that has experienced rapid growth, expanding from $1.05 billion to $2.05 billion over the past five years – a compound annual growth rate of 34%, according to the Data Security Council of India (DSCI). However, this growth isn’t without its challenges. Indian cybersecurity firms face the dual hurdles of establishing trust and capability to compete with established global players, and securing the long-term investment needed to avoid being acquired by larger entities.
Building a Global Footprint
The DSCI’s ‘Cyber Security Product Landscape Report 3.0’ reveals that approximately 55% of revenue generated by Indian cybersecurity product companies originates from international markets. Vinayak Godse, CEO of DSCI, emphasizes a growing focus on intellectual property (IP) and a trend towards hybrid software and hardware architectures. “The Indian security start-up ecosystem would have to chart an aggressive journey for the platformisation of its capabilities,” he stated.
The ecosystem is largely concentrated in major Indian cities – Bengaluru, Pune, Delhi, and Mumbai – with significant international markets emerging in North America, West Asia, and Southeast Asia. Manish Chachada, COO and Co-founder of Cyble, a cybersecurity startup, notes a crucial maturation within the industry. “What’s encouraging is the shift from services-led models to genuine product innovation — start-ups are building differentiated platforms in identity management, cloud-native security and behavioural threat detection that can compete on the global stage,” he said.
A key differentiator for Indian firms lies in their ability to provide contextualized threat intelligence. Clients increasingly demand actionable insights tailored to their specific geographic location and industry vertical. “The dark web isn’t monolithic — threat actors targeting Indian BFSI (banking, financial services and insurance) operate differently from those focused on manufacturing or healthcare. The localised understanding gives Indian start-ups a distinct advantage in their home market, but it also makes global expansion challenging,” Chachada explained.
The Trust Factor and Investment Landscape
Nearly 39% of Indian cybersecurity companies have secured external funding, with most receiving capital within two years of inception, indicating strong early-stage investor interest. Over 110 patents were filed in 2024-25, demonstrating active innovation and IP development. Despite this positive momentum, a significant bottleneck remains: establishing enterprise trust.
Chachada points out that security is “earned through proven incident response, rigorous compliance certifications and consistent delivery.” He observes that Indian startups often underestimate the length of enterprise sales cycles and the substantial investment required in customer success infrastructure. GT Venkateshwar Rao, Managing Director of Posidex Technologies, echoes this sentiment, noting a new generation of Indian founders are building globally-focused, product-led platforms from the outset, but face considerable hurdles.
“These entrepreneurs aren’t just fighting hackers — they’re fighting for trust, which is the most valuable currency in security. They have to work incredibly hard to convince businesses to choose them over established global brands — giants that can pour 100 times more money into a single marketing campaign. It’s an uphill battle where clever innovation and sheer grit are the only weapons that can level the playing field,” Rao stated.
Consolidation and the Future of Indian Cybersecurity
Strategic consolidation is anticipated within specific verticals. Chachada predicts that Indian companies will likely dominate areas where regional expertise is critical – such as supply chain security for manufacturing, digital payment fraud prevention, and infrastructure protection. However, he also suggests that many will ultimately be acquired by larger incumbents rather than evolving into independent global players.
Kiran Vangaveti, Founder-CEO of Blu Sapphire, frames the current situation as a story of growth, trust-building, and the potential for Indian startups to either scale into global security players or be absorbed by larger companies.
A key advantage for Indian startups lies in their agility and ability to respond rapidly to emerging threats. Venkat Madala, Founder of Ciberts, argues that many large technology companies offer generic AI security solutions that address only common, well-known risks. “This approach often leaves enterprises with limited control and creates a growing trust gap,” he said. “Start-ups like ours win by being fast, focused and deeply aligned with customer needs. We respond to new threats in hours, not weeks, and onboard customers with a lean, high-touch support model.”
Indian startups are uniquely positioned to adapt quickly, continuously innovate, and deliver secure-by-design AI systems. Enterprises are increasingly choosing these startups not just for their AI capabilities, but also for the agility and security control they provide in an increasingly AI-driven world. The future of Indian cybersecurity appears to be one of specialized expertise, rapid innovation, and a growing role in the global security landscape.
