The state of cybersecurity, with the fall of Optus and Medibank, has Aussies contemplating their digital choices. For all the blather of privacy and safety, companies are falling short of actually seeing through their promises. That is why cybersecurity company Senetas (ASX: SEN) is betting big on its Israel-based solution Votiro, into which it invested $12.3 million.
Votiro is a cybersecurity solution which functions using a cloud-based model. It attempts to ensure that all the files exchanged between you and others don’t carry viruses. It dubs the process as “sanitisation”. (Kind of makes you think of Votiro as a Covid prevention measure, doesn’t it?)
Today, as most people are working remotely and digitally, exchanging millions of documents, it is ever-so necessary to have such a check in place. Turns out, Votiro is aware and thriving in this ecosystem. The Company reported that its annual recurring revenue (ARR) was up 83% in FY2022. It was able to tap into large-scale client opportunities, with wins in the past year including large government agencies, financial institutions and industrial companies.
Votiro’s new customer pipeline has grown by over 60% since July 2022. It saw a 95% increase in renewals and signed three-year commitments in FY22 year-to-date. Plus, it noted bookings worth over US$500k ($770k) in the APAC government as of Q2.
Seneta’s investment in Votiro represented an opportunity to expand the Company’s security product portfolio. Plus, it would help the Company achieve its vision to provide leading security protection without compromising system performance or user experience.
Senetas committed to a US$8 million ($12.3 million) investment in Votiro over three installments from late 2018. The first one, amounting to US$4 million ($6.17 million), was paid in November 2018, and the rest were paid in January 2020. Senetas invested a further US$4.1 million ($6.3 million) in June 2020 as part of a rights issue undertaken by Votiro.
Currently, the Company holds just over 60% of Votiro’s equity on a fully diluted basis. Plus, it has provided additional funding to Votiro by way of a secured interest bearing loan that currently stands at US$6.3 million ($9.71 million).
Votiro is a leading provider of Content Disarm and Reconstruction (CDR) tech, which it has patented. In 2022, it updated the solution’s abilities so that it can instantly disarm and reconstruct content of all types (in the original file format), thus making it safe for use. Plus, it prevents all content-borne cyber attacks, regardless of origin, while preserving file functionality.
Senetas is making the most of its experience and deep relationships with US Government agencies, large commercial organisations and cloud protection software solution Thales as its global distribution partner to help deliver significant benefits.
As the scale and severity of ransomware attacks grows, almost alarmingly, Votiro aims to equip organisations with the essential cyber-security protection from file-borne attacks without compromising user productivity. And seeing how giants like Medibank and Optus are falling prey to scams, Votiro has a significant growth opportunity for its solution.
In fact, its optimism is reflected in its financial forecast for the coming years. For December 2022, it is targeting ARR of $7.8 million, up from $4.3 million in July 2022.
Alinda is a Business Reporter for The Sentiment
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