Indian cybersecurity firm Quick Heal Technologies Ltd. on Thursday said that it will invest $2 million (approximately ₹14 crores) in L7 Defense, an Israel based cybersecurity start-up that specialises in Application Program Interface (API) Security and Next Generation Web Application Firewall (NG-WAF).
Quick Heal had earlier invested $300,000 in L7 Defense during the previous financial year. Following the announcement, Quick Heal’s share prices went up by up to 7% to reach ₹179.65.
API Security has emerged as one of the key cybersecurity concerns for enterprises and is expected to be one of the most common attack vectors in 2022.
According to Gartner’s estimates, by 2021, 90% of web enabled applications will be exposed to attacks due to API related vulnerabilities, up from 40% in 2019.
Akamai’s research shows up to 75% of all credential abuse attacks on financial services industry targeted API endpoints directly.
NG- WAF is an updated version of legacy WAF and is considered far more effective when it comes to API security.
With the investment, Quick Heal is planning to leverage L7 Defense’s proprietary artificial intelligence (AI) powered Ammune technology, which provides protection against distributed denial of services (DDOS) attacks, BOT attacks and other malicious threats targeting APIs.
“L7 Defense has proven its unique capabilities in the area of API Security and NG-WAF which led us to further increase our investment. This move enables Seqrite to foray into application security and strengthen our solution stack to secure modern enterprises against the next-generation of cyber-attacks,” Kailash Katkar, MD and CEO, Quick Heal Technologies said in a statement.
The investment will also enable strategic alignments between the two companies and allow Quick Heal to expand its portfolio of enterprise solutions offered under the Seqrite umbrella and introduce L7’s flagship products in India, APAC and EMEA region.
Quick Heal recorded marginal revenue growth in the first half of FY21. EBITDA grew by 17.6% while EBITDA margin grew 632 bps YoY (year on year).
Retail segment contributed 83.5% to total revenue, while enterprises accounted for 16.5% to total revenue in H1FY21.