Arch0 raises $1.25 million, sponsored by Leo Capital, with a diversified investor base. Focused on the US market, including AI development for cloud security. Intends to tackle cybersecurity concerns in a growing sector with rising automation demand.
Arch0 will use the fresh funds to hire and improve its Al usage in cloud security. The startup intends to make security a fundamental aspect of how organizations utilize the cloud, making it faster and easier to discover and fix problems.
Arch0, a cloud security startup, has raised $1.25 million in a pre-seed fundraising round sponsored by Leo Capital, an early stage venture capital firm. Other investors in the round included Village Global, Indian Silicon Valley Capital, Appreciate Capital, and Supermorpheus, among others.
According to the startup, part of the funds will be used to advance the application of artificial intelligence (AI) in cloud security operations, while the remainder will be used to grow its core team.
“While developing cloud security solutions and assisting clients in implementing cloud security at our former company, we experienced numerous challenges and difficulties. Later, we realized that there has to be a simpler approach to tackle this, so we decided to start constructing Arch0,” Nithin Jois, CEO and co-founder of Arch0, told Economic Times in an interview.
Arch0, founded in 2022 by Jois and Tilak Thimmappa, provides mid-sized corporations and businesses with cloud security implementation and management services. The startup primarily targets the US market, with the majority of its sales coming from there. It also has a development team in Bangalore.
Arch0 intends to implement a subscription-based model in the future, possibly on a monthly or annual basis, even though it presently provides its platform to users without charge.
“If you look at the cloud cybersecurity business, it was probably around $10 billion a few years ago and is likely to increase in the next couple of years. With the introduction of newer technology, the complexities of (cybersecurity) attacks expand, and there is a greater necessity for the automation. Overall, we expect a lot of activity in this market,” Dinesh Singh, a partner at Leo Capital, stated.
Leo Capital, recognized for its investments in the technology-focused firms, has funded around 55 startups in pre-seed, seed, and pre-Series A rounds, with checks ranging from $0.5 million to $3 million.
