Arch0, a cloud security startup, has made headlines by raising $1.25 million in a pre-seed funding round. The funding round was led by Leo Capital, where several investors, including Indian Silicon Valley Capital, Appreciate Capital, Village Global, Supermorpheus, and others, also participated.

As per the startup, the freshly raised funds will be used to expand its core team. The startup will also use the capital to advance the use of AI in cloud security operations.

Arch0 | Cloud Security Startup

Founded by Nithin Jois and Tilak Thimmappa in 2022, Arch0 is a cloud security startup that enables firms to implement and manage cloud security operations. Catering to mid-sized enterprises and companies, Arch0 primarily targets the US market, with most of its sales originating from there. Additionally, the company maintains a development team in Bangalore.

Speaking about the development, Nithin Jois, CEO and Co-founder of Arch0, highlighted the problems they encountered while building cloud security solutions and helping clients in their previous company with implementing cloud security.

Jois added,

“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.”

With its seamless cloud security approach, Arch0 centralizes identity at the core of its strategy and leverages AI to streamline threat detection and remediation. This approach minimizes operational complexity, reduces costs, and enhances the security posture with minimal additional bandwidth from the teams. 

Currently, the startup is offering its platform free of charge to its customers. However, it plans to introduce a subscription-based model in the future.

Statement from the Investor

Commenting on the development, Dinesh Singh, a Partner at Leo Capital, highlighted the growth of the cloud cybersecurity market over the years. He noted that, from being valued at around $10 billion a few years ago, the market is expected to double within the next couple of years.

Singh added,

“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.”

Leo Capital led this funding round, coming just weeks after its investment in climate tech startup Sprih. Known for its investments in technology-centric startups, the VC firm has funded approximately 55 startups across pre-seed, seed, and pre-Series A rounds, with cheque sizes ranging from $0.5 million to $3 million.

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