SydeLabs Secures $2.5M Seed Funding Led by RTP Global for AI Security Solutions Amid Rising Cyber Threats

Bengaluru, India: SydeLabs, a recently launched AI security and risk management startup, has secured $2.5 million in seed funding. This round was led by venture capital firm RTP Global, with participation from Picus Capital and angel investors.

Focus on Product Development and R&D

SydeLabs plans to utilize the funding primarily for product development and research and development (R&D) initiatives. The startup aims to develop a suite of security solutions specifically designed to address the unique challenges posed by AI adoption within enterprises.

Founders Leverage Experience in AI

SydeLabs was founded in January 2024 by Ruchir Patwa and Ankita Kumari, both with prior experience in AI at the Mobile Premier League (MPL). Kumari, formerly the product management lead at MPL, observed the potential security risks associated with AI deployment alongside its benefits. This realization, coupled with Patwa's expertise in security and compliance, led them to create SydeLabs.

Traditional Security Measures Fall Short for AI

Kumari emphasizes the limitations of traditional cybersecurity measures in the context of AI. "AI systems are fundamentally different," she explains. "They're probabilistic, unlike deterministic systems we're used to. This necessitates distinct safeguards beyond conventional cybersecurity."

SydeLabs' Three-Pronged Approach to AI Security

SydeLabs is developing a comprehensive suite of three products to address AI security risks:

SydeBox: This automated scanner identifies potential issues within AI applications before deployment. SydeBox generates detailed reports to allow organizations to proactively address vulnerabilities in AI tools. The beta rollout of SydeBox occurred earlier this month, with partnerships already established across various sectors.

SydeGuard: Planned for a beta launch by the end of March, SydeGuard functions as a real-time security guardrail for AI products. Similar to a firewall for traditional systems, SydeGuard protects AI applications from cyberattacks. SydeLabs plans to implement a consumption-based pricing model for SydeGuard, charging businesses per evaluation conducted.

Compliance-Based Product: Recognizing the evolving regulatory landscape surrounding AI, SydeLabs is developing a solution to ensure enterprise compliance with relevant regulations.

Targeting $1 Million Annual Revenue by Year-End

With its product suite expected to be fully operational within 2024, SydeLabs projects an annual running revenue of $1 million by year-end. A significant portion of the funding will be directed towards R&D to stay ahead of emerging threats and continuously improve their product offerings.

Investor Confidence in SydeLabs' Vision

Galina Chifina, Partner at RTP Global's Asia Investment team, expressed enthusiasm about SydeLabs' potential. "We're excited about SydeLabs' role in establishing new security standards for cutting-edge AI applications," Chifina stated. "We believe in Ruchir and Ankita's vision and are thrilled to support them at this early stage."

Capitalizing on the Generative AI Boom

SydeLabs' emergence coincides with the burgeoning adoption of AI-powered solutions across diverse sectors. The generative AI market in India is projected for exponential growth, reaching an estimated value of $17 billion by 2030, according to Inc42's 'India's Generative AI Startup Landscape, 2023' report.

SydeLabs is well-positioned to address a critical need in the rapidly evolving AI landscape. Their focus on innovation and R&D ensures they can provide comprehensive security solutions for businesses leveraging the power of AI.