The cyber sector has received another boost with the initial public offering (IPO) of shares in Microsoft-backed cloud-based cybersecurity firm Rubrik, valuing the company at around $6.5 billion. Last week also saw that US private equity (PE) firm Thoma Bravo is to take UK cybersecurity company Darktrace private in a deal valuing the firm at over $5 billion.
Orders for Rubrik’s IPO were reported to be oversubscribed for 20 times the 23.5 million shares on offer, with half of the shares allocated to top institutional investors. This investor appetite for the cyber stock is being seen as a testimony to the robustness of the cybersecurity sector, as Rubrik posted operating losses of $307 million last year. But it is the company’s current growth curve that seems to have spurred on investors, with annual recurring revenues reported at $784 million as of the end of 2023, up 47% on the year before.
‘Rags to riches’ Rubrik CEO invests in India
Another key attraction for investors is its co-founder and CEO, Silicon Valley wunderkind Bipul Sinha. Sinha previously held engineering positions at Oracle and IBM and a venture capital stint at Lightspeed Venture Partners. Coming from a modest background in India, Sinha’s story is being seen as one of rags to riches in Silicon Valley. Still, the Rubrik CEO’s Indian roots are also perceived by some investors as a huge advantage in today’s global digital economy.
A third of Rubrik’s workforce is reportedly based in India, and the firm has developed dual research and development (R&D) facilities based in Palo Alto and Bangalore. the company is highly bullish about future growth prospects for the Indian sub-continent. In July 2023, Rubrik rolled out a $10-million ‘ransomware recovery warranty’ in India.
Sinha founded Rubrik in 2014, working in coffee shops near Google and YouTube offices to hire top developer talent. Today, Palo Alto-based Rubrik provides data security to over 6,100 customers, including appliance maker Whirlpool, PepsiCo, and investment bank Goldman Sachs. Rubrik has also committed to spending $220 million over 10 years on Azure, Microsoft’s cloud computing platform.
