If you told me that you were aware of cybersecurity firm Smokescreen's acquisition by Nasdaq-listed Zscaler in mid-2021, you are: a) In the cybersecurity space (or track it professionally) b) Lying The acquisition didn't make headlines, and why would it. In today's world where unicorn valuations are a dime a dozen, Mumbai-based Smokescreen is insignificant. While the actual terms of the acquisition haven't been disclosed, sources say Smokescreen was acquired for $40-45 million. Smokescreen's acquisition, though, is a timely reminder that while India is now home to over 80 unicorns, it hasn't had a single cybersecurity company enter this illustrious club. (Druva doesn't count—it has been headquartered in the US since 2012). Still, Smokescreen's journey is important. Completely bootstrapped at the time of its acquisition, it has created a blueprint for India's cybersecurity startups to attain valuations in the $100-500 million range in the coming four to five years. Its acquisition has also added sheen to the sector for VC investors, who have traditionally been lukewarm—if not totally cold—about the space. In our today's newsletter, we dives into the slow but steady plod of Smokescreen, using it as a prism to explain why India hasn't had a cybersecurity unicorn, and what it will take to change that.
