3 Cybersecurity Breaches That Cost Indian Startups ₹50+ Crore in 2024

Picture this: a promising Indian startup, on the verge of scaling to new heights, suddenly finds itself in the headlines—not for its innovation, but for a devastating cybersecurity breach.

In 2024, several Indian startups faced this nightmare, with breaches costing them over ₹50 crore each. These incidents weren’t just financial setbacks; they were wake-up calls for the entire startup ecosystem.

If you’re running a startup or scaling a business, these stories will make you rethink your cybersecurity strategy. But here’s the surprising part: these breaches weren’t caused by sophisticated hackers using cutting-edge tools.

They were often the result of overlooked vulnerabilities and missed opportunities to implement basic tech safeguards. Let’s dive into three cybersecurity breaches that shook Indian startups in 2024, the staggering costs they incurred, and the lesser-known lessons that could save your business from a similar fate.

1. WazirX: The $235 Million Crypto Heist That Shocked the Nation

In July 2024, WazirX, one of India’s largest cryptocurrency exchanges, suffered a catastrophic cybersecurity breach that resulted in the theft of $235 million (approximately ₹1,960 crore) in digital assets.

Yes, you read that right—₹1,960 crore. This breach wasn’t just a financial blow; it was a seismic event that rattled investor confidence and highlighted the vulnerabilities in India’s booming crypto sector.

Here’s the "wow" moment: the breach wasn’t caused by a lone hacker or a sophisticated attack. It was traced back to a compromised third-party wallet provider, Liminal, which WazirX relied on for storing user funds.

According to reports, the attackers exploited a vulnerability in Liminal’s multi-signature wallet system, draining funds from over 400 cryptocurrency wallets in a matter of hours.

What’s even more surprising? WazirX had reportedly conducted security audits, but the breach exposed gaps in their third-party risk management—a blind spot that cost them dearly.

The financial impact was staggering, but the ripple effects were even worse. WazirX faced a liquidity crisis, suspended withdrawals, and saw its user base erode as trust evaporated.

The breach also sparked regulatory scrutiny, with India’s Financial Intelligence Unit (FIU) launching an investigation into the incident.

What This Means for You:

If your startup relies on third-party vendors, especially for sensitive operations like payments or data storage, you’re only as secure as your weakest link.

Conduct rigorous third-party risk assessments and ensure your vendors meet the highest security standards. The cost of a breach far outweighs the investment in vetting your partners.

2. Angel One: The Multi-Crore Data Breach That Exposed Millions

In October 2024, Angel One, a leading Indian stockbroking platform, suffered a massive data breach that exposed the personal information of 7.9 million customers.

The financial cost? A staggering mutli-crore in direct damages, including regulatory fines, legal fees, and compensation to affected users. But the real damage was to the company’s reputation, which is harder to quantify.

Here’s the surprising twist: the breach wasn’t caused by a complex cyberattack. It was the result of a simple misconfiguration in Angel One’s cloud storage system, which left sensitive customer data—names, addresses, phone numbers, and even stock holdings—exposed on the dark web.

And here’s the "wow" moment: the vulnerability had been flagged by cybersecurity researchers months earlier, but Angel One failed to act in time.

The aftermath was brutal. The breach led to a significant drop in Angel One’s stock price, a flood of customer complaints.

What’s even more alarming? A 2024 report by PwC revealed that 54% of Indian startups have similar cloud misconfigurations, making them sitting ducks for cybercriminals.

What This Means for You:

Cloud security isn’t optional—it’s essential. Regularly audit your cloud infrastructure for misconfigurations and ensure your team is trained to respond to vulnerabilities quickly.

A small oversight can lead to a massive financial hit, and in India’s regulatory environment, the penalties are only getting stricter.

3. BSNL: The Major Data Leak That Exposed National Security Risks

In mid-2024, Bharat Sanchar Nigam Limited (BSNL), a state-owned telecom giant with a significant startup-like digital transformation arm, suffered a data breach that exposed over 278 GB of sensitive data.

While BSNL isn’t a traditional startup, its digital initiatives and reliance on startup-like agility make this breach a cautionary tale for the ecosystem. The financial cost? Estimated at over substantial amount, including the cost of mitigation, legal battles, and lost business opportunities.

Here’s the "wow" moment: the breach wasn’t just about customer data—it exposed critical national security information, including international mobile subscriber identity (IMSI) numbers, SIM card details, and home location register data.

The attackers, operating under the alias "kiberphant0m," claimed to have accessed server snapshots that could be used for SIM cloning and extortion. What’s even more surprising? This was BSNL’s second major breach in less than a year, following a similar incident in December 2023.

The fallout was severe. BSNL faced intense scrutiny from the Indian government, with the Ministry of Electronics and Information Technology (MeitY) ordering a full investigation. The breach also led to a notable impact on operations, costing the company a considerable sum in lost revenue.

What This Means for You:
If your startup handles sensitive data—whether it’s customer information or proprietary technology—don’t underestimate the risks. Invest in robust encryption, multi-factor authentication, and regular penetration testing.

And here’s a lesser-known tip: consider cyber insurance. In 2024, Indian startups with cyber insurance were able to recover up to 60% of their breach-related costs, according to a report by the Data Security Council of India (DSCI).

The Takeaway: Cybersecurity Isn’t a Luxury—It’s a Lifeline

These three cybersecurity breaches—inflicting massive financial losses on WazirX, a substantial hit on Angel One, and BSNL—aren’t just cautionary tales; they serve as a blueprint for what not to do. The surprising truth?

These incidents weren’t caused by unbeatable hackers or insurmountable challenges. They were the result of overlooked vulnerabilities, missed opportunities, and a lack of proactive tech implementation.

But here’s the silver lining: you can avoid their fate. By investing in third-party risk management, cloud security, and robust data protection measures, you can protect your startup from the financial and reputational damage of a breach.
And in India’s startup ecosystem, where competition is fierce and trust is hard-earned, cybersecurity isn’t just a defense—it’s a competitive advantage.

Sources:

1. Economic Times: "Year Ender 2024: Biggest Cyberattacks in India" (December 2024)
2. The Cyber Express: "The Top 15 Cyberattacks That Rocked India in 2024" (August 2024)
3. PwC India: "2024 Global Digital Trust Insights Survey" (2024)
4. Data Security Council of India (DSCI): "Cyber Threats: India Faces 370 Million Malware Attacks in 2024" (2024)
5. TechCircle: "Rewind 2024: Major Cyber-Attacks That Shook India This Year" (December 2024)