Data security solutions provider Induz raises $780,000 in funding from YourNest

Data security startup Induz has raised $780,000 in a funding round led by YourNest Venture Capital, investing $750,000, with an additional $30,000 from SanchiConnect as part of the YourNest-SanchiConnect Velocity Program 2024. 

This funding marks a significant milestone for Induz as it seeks to expand its offerings in data security and confidential computing solutions.

Plans for funding utilization

Induz plans to use the new funding to enhance its product development efforts, secure essential industry certifications, and establish several paid proof of concepts (POCs) with potential clients.

The startup is also preparing to expand its team, bringing in skilled engineers to strengthen its technical capabilities.

Additionally, the funds will support the development of proprietary hardware, which Induz believes is crucial for establishing a secure infrastructure.

Focus on confidential identity and access management

A key area of focus for Induz is its upcoming launch of Confidential Identity and Access Management (Confidential IAM) and an integrated data delivery solution.

These offerings will be part of a larger suite of data security tools designed to help businesses across sectors maintain robust security. It will focus on industries, including insurance, fintech, banking, and government sectors, particularly for applications involving secure AI model training with sensitive data.

Background and vision of Induz founders

Founded in 2023 by Tirumalesh Chalamarla and Sreerama Mohan Gadam in Hyderabad, India, Induz was created in response to ongoing data security concerns, such as the 2019 Capital One breach, which affected over 100 million individuals.

Chalamarla, Induz’s co-founder and CEO, said that this new investment “will expedite product development, secure paid proofs of concept (POCs) from clients, and help achieve essential security certifications.”

He emphasized that these certifications would be instrumental in establishing trust and reliability with clients, paving the way for long-term growth.

Market potential and industry position

The global data security market is valued at around $50 billion, highlighting significant growth potential for companies like Induz.

The startup is positioning itself as a pioneer in Confidential Storage SaaS with a zero-trust model that aims to provide clients with full control over sensitive data across various cloud environments.

Through the use of Intel SGX technology, Induz’s solutions allow encrypted data management in confidential computing environments, with protections at the hardware level that prevent access by cloud providers or even Induz itself.

Ranjeet Shetye, Venture Partner at YourNest, noted, “AI, data, and cloud will shape the future economy, yet recent data breaches have underscored the need for secure solutions. Induz’s approach, with zero-trust and hardware-level protections, reshapes the cloud landscape, ensuring businesses retain full control over sensitive data.”