Helion Venture Partners in talks to invest in security software company Seclore Technology

BANGALORE: Venture capital firm Helion Venture Partners is in talks to invest in security software company Seclore Technology, which was incubated at IIT Bombay.

If the talks are successful, Helion will invest about Rs 19 crore ($ 3.5 million) in the Mumbai-based company, with existing investor Ventureast expected to put in an additional Rs 13.6 crore, according to a person with direct knowledge of the transaction.

At the end of this round of funding, the two institutional investors could own about 35% of the company.

Founded by IIT graduates Vishal Gupta and Abhijit Tannu, Seclore offers technology that can reduce the risk arising out of information breaches and regulatory non-compliance. Some of its customers include IT services major CapGemini, the Adecco Group and Essar Group.

Gupta, the chief executive of the company, denied that a deal was in the offing, but said the company had been in discussions with potential investors for the last year-and-half.

"We are looking to raise between $6 million to $8 million, which will be used towards growth in international markets, which contribute 50% of our revenue," he added.

This is the second venture for the two entrepreneurs who had earlier set up a channel and wealth management venture Herald Logic.

Helion Venture Partners and Ventureast Tenet Fund managing partner Sateesh Andra did not respond to emails seeking confirmation of the ongoing talks.

According to industry experts, the global Information Rights Management market is estimated at $60 billion. In India, the market for the same is estimated between Rs 300 crore and Rs 500 crore.

Seclore, incorporated in 2004, has raised an initial round of funding from Ventureast, which primarily looks at investments across technology and technology-enabled sectors.

Helion Venture Partners, a Mauritius-registered early to mid-stage India focused fund, closed its third fund with a corpus of $255 million in March last year.

The venture capital firm, which manages assets worth $600 million and above, is one of the most active risk capital players in the country, with a strong focus on consumer-facing and technology ventures.