Mr Mahesh Murthy, president, Passionfund said: "Security is a key issue for all private information in a networked world. And impressed with the company's potential globally we decided to invest in it."Mr Murthy explains that exists three problems despite the various companies offering several encryption schemes.

Firstly, the US government and the Wassenar Convention consider strong encryption technology as an armament. It does not allow free export of the technology to the rest of the world. The result of which, weak encryption products are free for export from the US companies.

Secondly, it is rumoured that arms in the US Department of Defence may have secret backdoors into some encryption software, thereby making it unsuitable for use in the other companies.

Thirdly, encryption software is typically complex to set up and use. SecureSoft, he adds, solves these problems. Their products offer high grade encryption legally developed outside the US and is hence free for sale, with no restrictions. They guarantee no backdoors and are offering a reward of Rs 1 million if their software can be hacked. "This is our challenge," he claimed.

Commenting on the response to this challenge, he informed that so far 20,000 experts from all over the world have downloaded this software to try and hack into it. This software is free for download from http://www.secure-soft.com/. He said,"Secure Soft's products are secure, easy to set up and use and there are versions of this product available for everyone from individuals to large corporation."

Mr Murthy said that there were two strategies involved - one, the product strategy that involves creation of unbreakable encryption product and service aimed at the various user platforms from stand-alone PCs and laptop to Internet communication, LAN, WAN network and smart card solutions. The second is the marketing strategy. This entails partnering with value-add resellers for the deployment of PC-based solution and partnering with leading Internet messaging vendors to provide secure scrambled communication, online as well.

Secure Soft has already tied up with one of the leading Internet messaging vendors to provide this encryption solution. They are also in discussion with an Internet broking and trading business to provide security and encryption software that is specific to their needs.

When asked how the investments would be deployed, Mr Abhay Mehta, Secure Soft India Pvt Ltd said,"it would be deployed for research and development. This is an area where India could be a world leader".