Indian Cybersecurity Startups Expand Overseas Amid Rising AI Threats

• •Indian cybersecurity startups are expanding internationally due to larger contract opportunities.
• •Sophos India reported a 60% growth, highlighting a robust demand for cybersecurity solutions.
• •Identity-based attacks, especially phishing, are a significant threat in India, ranking second globally.

Indian cybersecurity startups are increasingly looking to international markets for growth as AI-driven cyber threats become more sophisticated. The local market is projected at $6.56 billion, significantly smaller than the nearly $100 billion US market. Companies like Contrails AI are shifting their revenue mix from 80% domestic to a target of 50% international by the end of 2026, driven by larger contract sizes overseas. Sophos India reported a 60% growth, outpacing the domestic market, attributed to heightened awareness and regulatory focus from the DPDP Act. However, the Indian cybersecurity landscape faces challenges, including a 'cybersecurity poverty line' affecting organizations lacking resources and expertise. Identity-based attacks, particularly phishing, are prevalent, with India ranking as the second highest globally for such incidents. The overall cybersecurity market in India is growing at approximately 15%, but the rapid expansion of startups indicates a competitive and evolving landscape.