India’s cybersecurity landscape is undergoing a significant shift, moving beyond traditional services toward innovative, product-led platforms. Driven by increasing digitization, the growing sophistication of AI-powered threats and the implementation of novel data protection regulations like the Digital Personal Data Protection (DPDP) Act, Indian startups are developing solutions in areas such as cloud security, identity management, and threat detection, often with a global market in mind from the outset. This burgeoning sector, but, faces challenges in establishing trust and securing the long-term investment needed to compete with established international players.
The Indian cybersecurity product market has experienced rapid growth, expanding from $1.05 billion to $2.05 billion over the past five years, representing a compound annual growth rate of 34%, according to the Data Security Council of India (DSCI). This expansion is fueled by a growing emphasis on intellectual property (IP) development and a move towards hybrid software and hardware architectures. The rise of India’s DPDP Act is also creating demand for new security solutions to ensure compliance.
Currently, there are over 400 cybersecurity product companies operating in India. Vinayak Godse, Chief Executive Officer of DSCI, emphasizes the demand for an “aggressive journey for the platformisation of its capabilities,” noting that approximately 55% of these companies already generate revenue from global markets. This indicates a growing ability to compete internationally and a focus on developing proprietary technologies.
Glocal Strengths and Expanding Markets
The core of India’s cybersecurity ecosystem remains concentrated in major tech hubs like Bengaluru, Pune, Delhi, and Mumbai. However, Indian cybersecurity products are gaining traction in international markets, particularly in North America, West Asia, and Southeast Asia. Manish Chachada, Chief Operating Officer and Co-founder of Cyble, believes the ecosystem has matured significantly, observing a “shift from services-led models to genuine product innovation” in areas like identity management and cloud-native security.
Chachada highlights the value of localized understanding, stating that threat actors targeting Indian banking, financial services, and insurance (BFSI) sectors operate differently than those focused on manufacturing or healthcare. This regional expertise provides a competitive advantage within the domestic market, though expanding globally requires adapting to different threat landscapes.
Addressing Key Bottlenecks to Growth
Despite the positive trajectory, Indian cybersecurity companies face challenges. Nearly 39% have secured external funding, with most receiving capital within two years of inception, demonstrating strong early-stage investor interest. Over 110 patents were filed in 2024-25, showcasing active innovation and IP development, according to the DSCI report. However, establishing enterprise trust remains a significant hurdle.
“Security isn’t sold, it’s earned through proven incident response, rigorous compliance certifications and consistent delivery,” Chachada explains. He notes that Indian startups often underestimate the length of enterprise sales cycles and the investment required in robust customer success infrastructure. GT Venkateshwar Rao, Managing Director of Posidex Technologies, echoes this sentiment, emphasizing that a new generation of founders is building product-led platforms with a global focus, but faces an uphill battle against established brands with significantly larger marketing budgets.
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 crucial, such as supply chain security for manufacturing and digital payment fraud protection. However, he also suggests that many startups may ultimately be acquired by larger incumbents rather than becoming independent global players. Kiran Vangaveti, Founder-CEO of Blu Sapphire, agrees, stating the current growth is driven by the ability to win enterprise trust and scale into global security players or be absorbed by larger companies.
Venkat Madala, Founder of Ciberts, argues that many large technology companies offer generic AI security solutions that address only common risks like prompt injection and data leakage. Startups, he contends, differentiate themselves by providing faster response times, tailored solutions, and a high-touch support model. Indian startups are uniquely positioned to deliver secure-by-design AI systems, offering both the AI capability and the agility and control needed in an increasingly AI-driven world.
The future of Indian cybersecurity appears promising, with a growing number of startups poised to capitalize on the increasing demand for innovative security solutions. Continued investment in research and development, coupled with a focus on building trust and establishing a strong global presence, will be critical for these companies to realize their full potential. As the threat landscape evolves, the agility and specialized expertise of Indian cybersecurity firms will likely play an increasingly important role in protecting businesses and individuals worldwide.
What are your thoughts on the future of cybersecurity innovation in India? Share your insights in the comments below.
