Israeli startup Coralogix to invest bulk of $115 million fundraise in India | Company Business News-OxBig News Network

Israeli data analytics startup Coralogix will be deploying most of its fresh fundraise of $115 million in India as it looks to deepen its presence in the country, according to the company’s India head.

“We’re going to ramp up the engineering R&D team here in India, including a large number of positions relating to artificial intelligence and data science,” Navdeep Manaktala, India head at Coralogix, told Mint in an interview. India is one of the company’s top three markets, the other two being the US and Europe.

Coralogix, which also runs a cybersecurity business, on Tuesday announced its Series E fundraising round led by California-based NewView Capital and NextEquity Partners with participation from the Canada Pension Plan Investment Board (also known as CPP Investments). 

The company’s post-money valuation stands at over $1 billion, making it a unicorn startup. Prior to the latest fundraise, the company had raised a $142 million Series-D round in 2022, led by Advent International and Brighton Park Capital. 

Coralogix plans to increase the size of its India head office in Gurgaon, set up an office in Bengaluru, and expand teams across sales, customer service, and custom engineering functions in the country. 

The company currently has 150 employees in India, out of 370 globally, catering especially to customers in the banking, financial services and insurance (BFSI), edtech, information technology, and logistics sectors. “A change we’ve seen in the last 6-12 months is that we are seeing a lot more enterprise customers coming on board,” said Manaktala. 

A large chunk of Coralogix’s India revenue comes from non-banking financial companies and financial technology startups. The company recently also added banks in India to its client list. Manaktala declined to disclose the banks or specify how much the BFSI sector contributes to the company’s overall India revenue.

When Coralogix entered India in 2020 it pledged to deploy $30 million over a five-year period to meet local data compliance laws. It set up its first Amazon Web Services server in Mumbai to help companies with regional server support and data storage capabilities.

Scaling cybersecurity in India

As part of deepening its presence in India, Coralogix plans to “significantly” expand its cyber security offerings in the country. Coralogix’s cyber security arm, SnowBit, which was launched in 2022, has its global hub based out of India. 

“We are seeing an increasing contribution with respect to cybersecurity to the overall business,” said Manaktala, but declined to share how much the business contributes to the company’s overall revenue. 

In the last two years, the company has seen heightened interest from both enterprise users and startups for its cybersecurity services. While the company’s core R&D for cybersecurity continues to be developed in Israel, Coralogix made an active decision to expand into India on account of the growing market here. 

“Given these facts, and that (India has) a lot of available talent here, a large customer base which is very demanding in terms of their specific requirements and the fact that we’ve got a lot of inputs from them regarding product adaptation and enhancement, we decided to have a large R&D center out of India too,” said Manaktala. 

Coralogix’s increased focus on its cybersecurity business in India comes at a time when companies across the board are struggling to keep up with new digital threats with advances in artificial intelligence disrupting the playing field. 

In India alone, companies are expected to spend $3.3 billion this year on network security, security services, and security software, a 16.4% increase from 2024, according to a Gartner forecast.