Deep-tech cybersecurity company QNu Labs expects to generate an order pipeline of ₹10-15 crore from its newly launched QShield 2.0 platform in the current financial year, as the company steps up commercial deployment of its quantum-safe security technology.

QShield 2.0 is expected to have an average deal size of ₹1-2 crore, with an average sales cycle of about four months, QNu Labs co-founder Sunil Gupta told CNBC-TV18.

The company is targeting revenue of ₹80 crore in FY27, as it looks to convert growing interest in quantum-safe cybersecurity into larger enterprise deployments. Gupta did not disclose QNu Labs’ FY26 revenue.

QShield 2.0 is positioned as an end-to-end quantum-safe security platform. Gupta said IBM is QNu Labs’ biggest global competitor in this segment, while the company’s differentiation lies in offering a full lifecycle stack spanning entropy services, discovery, public key infrastructure (PKI) and QVault components.

However, customer adoption and lengthy enterprise sales cycles remain the biggest commercial challenges, Gupta said, given the relatively early stage of quantum-safe security technology.

QNu Labs has recently raised ₹200 crore in a Series A1 funding round led by the National Quantum Mission and Speciale Invest, with participation from Sony Innovation Fund, Gaja Capital and Artha Ventures, among other investors. The round takes the company’s total capital raised to ₹375 crore.

Gupta said half of the latest ₹200 crore fundraise will be allocated towards research and development, with the remaining 50% earmarked for go-to-market initiatives and global expansion.

Part of the funding will also be used as QNu Labs’ contribution towards an approved project funded under the Research, Development and Innovation (RDI) initiative to build the technology backbone for India’s Quantum Secure and Sensing Networks (IQSN).

The company plans to use the capital to expand its quantum-safe technology stack, including investments in quantum sensing and artificial intelligence, while scaling its commercial operations in India and overseas.

QNu Labs, which was incubated at IIT Madras in 2016, was founded by Srinivasa Rao Aluri and Sunil Gupta. The company has around 160 engineers, physicists and mathematicians and serves customers globally across critical infrastructure and other sensitive sectors.

For now, India remains the company’s largest market, with most of its business coming from domestic customers. QNu Labs is looking to increase its presence in international markets as part of its broader go-to-market expansion.

The nature of customer spending is also beginning to evolve. Gupta said customers have recently started seeking assessment services to evaluate their exposure to quantum-related security risks, whereas spending earlier was largely focused on actual deployments.

The shift comes as enterprises and governments prepare for the potential impact of quantum computing on existing encryption systems. India’s National Quantum Mission has set a target of 2029 for key developments in the country’s quantum ecosystem, adding to the focus on quantum-safe infrastructure.

Gaja Capital Co-Founder and Managing Partner Gopal Jain has said quantum-safe security is emerging as a form of national infrastructure, drawing a parallel with power and transport infrastructure in the physical economy. He said the company had moved from proving its technology to focusing on scaling as demand begins to build.

For QNu Labs, the next phase will therefore hinge on converting growing interest in quantum-safe security into commercial deployments, while shortening enterprise adoption cycles and expanding beyond its India-heavy revenue base.