Cloud security startup Arch0 raises $1.25M in a pre-Seed round led by Leo Capital

Cloud security startup Arch0 has raised $1.25 million in a pre-seed funding round led by Leo Capital, a venture capital firm renowned for its focus on early-stage, technology-centric startups. 

The round also saw participation from a diverse group of investors, including Village Global, Indian Silicon Valley Capital, Appreciate Capital, Supermorpheus, and others. The funding will help the startup expand its core team and enhance its artificial intelligence (AI) capabilities in cloud security operations.

What does Arch0?

Founded in late 2022 by Nithin Jois and Tilak Thimmappa, Arch0's mission is to simplify cloud security for mid-sized enterprises. It provides a revolutionary approach that integrates proactive and automated security measures throughout the Software Development Life Cycle (SDLC).

"While building cloud security solutions and helping clients in our previous company with implementing cloud security, we encountered multiple problems and complexities involved in it. Later, we decided that there needed to be an easier way to go and solve this, and that's when we decided to start building Arch0," Nithin Jois, CEO and co-founder, shared with ET. 

Targeting the U.S. market from Bangalore

The startup primarily focuses on the U.S. market, from which the majority of its sales originate, while maintaining a development team in Bangalore. The startup has introduced its platform free of charge for its customers but plans to transition to a subscription-based model, potentially on a monthly or yearly basis, in the future.

“If you look at the cloud cybersecurity market, it was probably around $10 billion a few years back, and it is expected to double in another couple of years. With the emergence of newer technologies, the complexities of (cybersecurity) attacks are also increasing, and there is a growing demand for automation. Overall, we will see a lot of action in this space,” Dinesh Singh, a partner at Leo Capital, said.

The growth of the global cloud security market 

The global cloud security market was valued at $29.26 billion in 2021 and is projected to grow from $33.13 billion in 2022 to $106.02 billion by 2029, exhibiting a Compound Annual Growth Rate (CAGR) of 18.1% during the forecast period. North America accounted for a significant portion of the market, with a value of $11.82 billion in 2021.

The growth trajectory underscores the increasing importance and investment in cloud security solutions across various regions and industries, particularly in response to the heightened demand for robust security measures amid the rapid adoption of cloud-based solutions and services.