Cybersecurity attacks in Southeast Asia are on the rise. The number of successful attacks doubled in 2024 compared to 2023. Even though each of the region’s nations ranks high on the Global Cybersecurity Index 2024, significant challenges remain.    

More than 50% of consumers report encountering a scam at least once a week. Further, the region is home to a significant underserved population that can be much more vulnerable due to low digital literacy and awareness.

Here are 4 cloud infrastructure startups in Southeast Asia to look out for

Fortunately, a growing number of cybersecurity startups are working on tackling this issue. These startups can create novel digital security solutions that can improve cybersecurity in Southeast Asia. 

The state of cybersecurity

Southeast Asia is going digital at a very rapid pace, with internet penetration reaching as high as 97% in Malaysia. However, this swift digitisation also attracts cyber criminals at a record rate. Both organisations and consumers can be targets of such attacks. The Asia-Pacific region has been the region with the highest amount of cybersecurity attacks, accounting for 31% of all attacks around the world in 2023.

Cybercrime shot up by 82% between 2021 and 2022 in the Southeast Asian region, exploiting those who lack financial literacy.  The most common type of attack is one attempting to gain access to personal data, which the hackers can then use for various other crimes, such as fraud or phishing. 

A rising category of startups is meeting the growing need for cybersecurity services. These startups aim to provide world-class services with affordable pricing thanks to the economies of scale. 

watchTowr

Founded in 2021 by ethical hacker turned entrepreneur Benjamin Harris, Singapore-based watchTowr is reimagining how organisations approach cybersecurity. Rather than waiting for vulnerabilities to be discovered post-breach, watchTowr proactively simulates attacker behaviour in real-time, helping businesses identify and patch gaps before malicious actors strike. Their platform, which leverages Continuous Automated Red Teaming (CART), is designed to stay one step ahead of cybercriminals, offering a constantly evolving defence system against ever-changing threats.

In October 2024, watchTowr secured US$19 million in Series A funding, led by Peak XV (formerly Sequoia India & Southeast Asia), bringing their total raised to US$29 million. The fresh capital is fueling their expansion across APAC and helping them scale their engineering and research capabilities. 

With a growing client base that includes Fortune 500 companies and critical infrastructure providers, watchTowr is rapidly becoming a key player in the region’s cybersecurity ecosystem. 

Right-Hand Cybersecurity

Another Singaporean company, Right-Hand Cybersecurity, is just six years old but has already started making an impact. It was founded by Theo Nasser and Uzair Ahmed, both cybersecurity experts, because they noted a significant gap in the industry, with companies investing millions into cybersecurity defences but still becoming victims of data theft.  

Right-Hand Cybersecurity aims to solve this problem by leveraging employee behaviour, which can significantly impact how threats are detected and averted. 

V-Key

V-Key was founded in 2011 by three Singapore-based co-founders. The company makes it possible to conduct digital payments securely. The company’s clients are financial institutions, mobile payment apps, and governments that must ensure that online transactions occur without issues. 

The company has developed the V-OS, a proprietary software product that enables cloud-based payments and digital identity verification. 

CyStack

Founded in Vietnam in 2017, CyStack is part of the first wave of Vietnamese startups. The company, helmed by co-founders Trung Nguyen and Chien Tran, has served over 200 enterprise customers and more than 20,000 individuals. 

Over the past 8 years, it has built a suite of over 15 products which combine to deliver comprehensive cybersecurity solutions for both corporate and personal usage. The company’s innovative solutions include product security, data security, and operations security.  

ArmourZero

Malaysia’s ArmourZero aims to be a one-stop shop for all cybersecurity solutions, catering to enterprise needs. The company bundles numerous different aspects of cybersecurity into a single comprehensive service. 

It has also adopted a security-as-a-service model, which can help make such solutions more affordable without needing a heavy upfront investment. 

Challenges and opportunities for cybersecurity startups in Southeast Asia

Cybersecurity remains a growing field with significant potential for startups in Southeast Asia. Due to the very nature of information technology, security threats are constantly evolving. Hackers and fraudsters can leverage the latest technology to create new threats and methods for stealing information. 

For example, the emergence of artificial intelligence has the potential to open an entirely new branch of cybersecurity, which will be needed to guard against a whole new wave of threats. Deepfakes are already in use to spread disinformation, and we need appropriate safeguards in place to protect the online and digital spaces. 

Another significant challenge for companies is the lack of qualified and capable talent. Companies are constantly competing for the best talent, which can help unlock new opportunities. 

Overall, the need for cybersecurity startups will likely keep growing as the region continues to digitalise. Cybersecurity in Southeast Asia provides significant opportunities for new founders looking to make a mark. The next wave of digital security solutions will need to be effective against a growing wave of increasingly sophisticated threats.