- Karamba Security recently announced it raised $10 million in an extension to its B Round financing. These are the details.
Karamba Security recently announced it raised $10 million in an extension to its B Round financing. VinFast (a member of Vingroup, the largest private conglomerate in Vietnam) led the investment with participation from SVIC, a leading corporate VC from South Korea and existing investors: YL ventures, Fontinalis Partners, Liberty Mutual, Presidio Ventures, Glenrock, Paladin Group, and Asgent. This brings the total capital invested in Karamba Security to $27 million.
The investors in the round were motivated by Karamba’s strong customer base and leadership in IoT and automotive security. And other factors were the due diligence conducted with Karamba’s customers and the growing need for IoT and automotive compliance with new cybersecurity regulations.
The company will use the new funding to accelerate the development of its product roadmap to meet customer demands to comply with newly created regulations such as UN R155 and ISO 21434 for automotive cybersecurity and the U.S. Executive Order on Improving the Nation’s Cybersecurity.
Karamba Security is known as an industry-leading automotive and IoT security company providing cybersecurity solutions that secure the device’s entire lifecycle without the interference of R&D or supply chain processes. And Karamba’s seamless IoT security enables automotive OEMs and suppliers, as well IoT device manufacturers, to comply with industry regulations and differentiate their offerings without imposing costly changes on their product development schedules or requiring changes to legacy modules they use. Plus Karamba’s recently launched cloud-based incident analysis has been getting strong market traction, including securing and monitoring a fleet of 800K units in over 100 countries around the globe.
“Based on our view of the market and extensive technical evaluation, witnessing first-hand Karamba’s core technology and learning from other OEMs, we see how well-positioned Karamba is to help our companies leapfrog ahead on their paths to cybersecurity. We are particularly impressed with their product leadership and customer traction. In addition, they can help us–as well as other OEMs and IoT device manufacturers–to comply with the new cybersecurity regulations, such as UN and ISO/SAE automotive cybersecurity requirements and the U.S. Executive Order for Cybersecurity, something that is essential for our expansion plans into the European and U.S. markets.”
— VinFast deputy CEO Pham Thuy Linh — Regarding the regulations, VinFast’s Linh was referring to the new cybersecurity regulation published under the auspices of the United Nations Economic Commission for Europe, UNECE WP.29/R155. The requirements, based on the newly ratified global ISO/SAE 21434 standard, will become mandatory in the EU for all new vehicle types from July 2022 and all new vehicles sold from July 2024.
“National and individual risks of cyberattacks on IoT devices and connected vehicles have driven strong regulatory requirements. IoT device manufacturers and automotive OEMs are in an urgent need to comply with such regulations, without changing R&D processes, delaying time to market, or increasing product manufacturing costs. Karamba’s one-stop-shop offering of products and services has driven strong market traction of such OEMs and IoT device manufacturers, who are attracted to Karamba’s seamless security throughout the device lifecycle.”
— Ami Dotan, Karamba co-founder and CEO