The B2 round comprised a mix of primary and secondary deals, which saw participation from the VC arm of the US state of Connecticut, Connecticut Innovations
CloudSEK plans to leverage the investment to accelerate expansion in the US and establish its regional hub for operations, hiring and partnerships in Connecticut
CloudSEK is a cybersecurity startup that helps businesses monitor their systems and predict cyber threats through its AI-powered tech stack
Cybersecurity startup CloudSEK has raised $10 Mn in its extended Series B round, which saw participation from the VC arm of the US state of Connecticut, Connecticut Innovations (CI).
In a statement, the startup said that the B2 round comprised a mix of primary and secondary fundraise. With this, the startup claims to have become the first Indian-origin cybersecurity company to bag funding from a US state-backed fund.
“With Connecticut as our US anchor, we are committed to creating jobs, investing in localised research, and strengthening cyber resilience in the Western world. CloudSEK is proud to advance its identity as a truly Indo-American cybersecurity company,” said CloudSEK founder and CEO Rahul Sasi.
The startup said it plans to leverage the investment from CI to accelerate expansion in the US and establish its regional hub for operations and partnerships in Connecticut. It also plans to hire strategic local talent and build collaborations with local “corporate partners” and universities.
This follows the startup raising $19 Mn in its Series B1 round in May 2025 at a post-money valuation of $120 Mn. CloudSEK said it has wrapped up its broader Series B round with the latest B2 tranche.
Founded in 2015 by Sasi, CloudSEK is a cybersecurity startup that helps businesses monitor their systems and digital infrastructure and predict cyber threats through its AI-powered tech stack. Unlike traditional solutions, the startup claims to identify initial attack vectors (IAVs), the earliest signs of a potential breach such as leaked credentials and exposed APIs.
It claims to cater to more than 300 companies across sectors such as BFSI, healthcare and technology.
CloudSEK competes with the likes of NSE Emerge-listed TAC Infosec, Astra Security and WhizHack.
The fundraise comes amid a healthy spurt in cybersecurity investment with the rise of AI. The technology enables attackers to deploy automated, sophisticated threats like deepfakes and smarter phishing. As a result, investor interest in the sector is growing, as enterprises spend on protecting their systems and digital infrastructure.
Just last month, AI security startup Mirror Security bagged $2.5 Mn in its pre-seed funding round led by Sure Valley Ventures and Atlantic Bridge. In September last year, another cybersecurity startup Aurva secured $2.2 Mn in its seed round led by Nexus Venture Partners.
At the heart of all this is the growing global cybersecurity market, which is projected to become a $562.72 Bn opportunity by 2032.
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