I have some concerns regarding TAC Security and the long-term sustainability of its business model.
The CEO, Trishneet Arora, is very positive about all their businesses such as Cyberscope, CASA (their vulnerability management product), Socify, and their ESOP related products. However, my concern is about competition and the company’s ability to keep improving its products every year.
This industry already has very large global players with billions of dollars in funding. These companies continuously upgrade their technology and invest heavily in R&D. TAC Security, on the other hand, still operates with relatively limited financial resources. Because of this, I wonder whether the company will be able to consistently upgrade its products year after year and compete with larger players.
In one concall, Trishneet Arora mentioned that the long-term vision is to build each business unit into a ₹1000 crore company or even larger. While the vision is ambitious, when we look at the numbers more carefully, the actual potential profits from some of these businesses appear relatively small in the near term.
For example, in the case of Cyberscope, if the company reaching around 3,000 customers in the future, compared to roughly 500+ customers in 2024. Even if this target is achieved, the estimated profit might only reach around ₹15–25 crore. Since TAC Security may hold around 50% after the IPO, the profit contribution to TAC Security’s books could be only about ₹7–12 crore.
The second business is Socify, which focuses on SOC 2 compliance automation. However, there are already strong competitors in this space like Vanta and Drata. These companies have been operating since around 2011–2013 and currently have around 10,000–15,000 customers. They charge higher fees and therefore have strong revenue and valuations.
Socify, on the other hand, appears to be targeting smaller companies with lower pricing. The company has talked about reaching 10,000 customers within 12–24 months. That would require acquiring around 400+ new customers every month, which seems quite aggressive.
Another concern is that TAC Security has not been providing frequent updates on Socify’s progress. There have been no detailed updates after December, even though many investors are waiting to see actual traction in terms of paying customers and revenue.
Currently the market seems to be valuing TAC Security at around ₹1500 crore based on a possible FY26 profit of around ₹30 crore. But if Socify does not perform as expected, the valuation could fall significantly because a large part of the future growth story depends on this product.
The company also does not provide very detailed data in their investor presentations. For example, they mentioned an average client fee of around $1600 and around 7,000 customers. If we assume 6,000 customers with an average annual revenue of about ₹1.4 lakh per client, that would translate to roughly ₹11,666 per month per client. Over six months, this could imply around ₹42 crore of revenue.
However, without clear disclosure about how many of these are paying customers and what the actual ticket size is, it is difficult for investors to properly evaluate the business.
I have personally invested in this company mainly with the hope that Socify becomes successful. Even if the company achieves only half of its long-term 2030 vision, it could still create significant value.
If anyone in the forum has deeper insights into this business, the competition, or the real customer traction of Socify, it would be very helpful to share more information so that we can better understand the company’s future prospects.