Vijay Kedia-Backed Cybersecurity Saas Startup TAC Security Files DRHP With NSE Emerge

TAC Infosec Limited, also known as TAC Security, has filed its draft red herring prospectus (DRHP) to list on the NSE’s small and medium enterprises (SME) focussed platform NSE Emerge.

The initial public offering (IPO) of the startup, backed by ace investor Vijay Kedia, will comprise a fresh issuance of 28,29,600 equity shares.

TAC Security plans to utilise the net proceeds from the IPO to acquire TAC Security Inc (Delaware, US) and make it a wholly owned subsidiary. It also plans to invest in human resources and product development to improve its product development capabilities. The remaining capital will be utilised for general corporate purposes.

The company has appointed Beeline Capital Advisors Private Limited as the book running lead manager and Skyline Financial Services Private Limited as the registrar to the issue.

Founded by Trishneet Arora in 2016, the startup offers risk-based vulnerability management and assessment solutions, cybersecurity quantification and penetration testing to organisations through the SaaS model.

Most of its revenue is generated from markets outside of India. TAC Security said it aims to sustain its efforts in promoting and selling its products and solutions to users in these markets by investing in building its brand, advertising, and expanding its marketing operations.

Kedia invested in the startup in its pre-Series A round in 2016.

Founder and CEO Arora is the largest shareholder of TAC Security with a 74% stake. Kedia owns a 15% stake in it, while Ankit Vijay Kedia, Charanjit Singh and Subinder Jeet Singh Khurana hold 5%, 4% and 2% stakes, respectively.

TAC Security said it reported a total revenue of INR 5.31 Cr and a profit (PAT) of INR 1.94 Cr in the first half of the ongoing fiscal year. In FY23, its PAT stood at INR 5.07 Cr on a revenue of INR 10.14 Cr.

Of late, a number of new-age tech startups have been choosing to go for listing on SME platforms of the exchanges. Drone startup DroneAcharya listed on the BSE SME platform in December 2022, while blockchain and IT development startup Yudiz Solutions listed on NSE Emerge last year.

Amid the funding winter and the volatility in the equity markets, the number of startups going for public listing saw a sharp decline in the last two years. While only three new-age tech startups listed on Indian exchanges in 2022, the number rose to five in 2023. However, this number is expected to see a sharp increase in 2024 amid the ongoing bull market.

Five new-age tech startups – Ola Electric, MobiKwik, FirstCry, Awfis, and Unicommerce – filed their DRHPs over the past month for listing on the exchanges.