MY1LOGIN, the online password specialist, has signalled plans to boost its headcount and ramp up its European expansion plans after securing funding worth £1.3 million.

The Glasgow-based company, whose identity and access management solutions help companies combat cyber crime, has been backed again by Scottish Investment Bank, Equity Gap and TRI Capital, with Par Equity investing in the business for the first time.

Chief executive Mike Newman said the investment would allow My1Login to increase staff numbers by 50 per cent to 22 over the next six to nine months, paving the way for it to expand its customer base in Europe.

Mr Newman noted there is increasing concern over the security of hosting data in the US and working with US-based software sellers who operate outside EU data protection legislation.

He said: “My1Login has landed some very large contracts and we are delighted the additional investment will give us the mean to accelerate our growth in Europe.

“I’m pleased that My1Login has continued to attract larger levels of investment, reflecting increasing confidence in our growth plans.

The latest funding for My1Login comes after Scottish Investment Bank, Equity Gap and TRI Capital invested £680,000 in the business in 2014 to help it speed up growth plans and target business customers.

The company, whose software allows employees secure access to systems on multiple devices using a single sign-in, now serves more than 1,000 companies.

It recently landed a contract with Business Stream, the non-domestic water services company, and signed partnership deals with Salesforce and RSA.

My1Login has seen business growth amid the growing threat to private and public organisations from cyber attacks, with recent research measuring the average cost of a data breach to a large UK organisation at £2.3m. The HM Government Information Security Breaches Survey found that 90 per cent of large UK businesses suffered a data breach last year.

Kerry Sharp, head of the Scottish Investment Bank, said: “It is companies like My1Login that we are here to support and it is exciting to see the company continue to expand its offering and market reach. Scottish Enterprise looks forward to supporting My1Login’s continued growth.”

Added TRI Cap chairman Rob Dick: “Our syndicate members are extremely impressed by the technology and IP that My1Login have developed and continue to support them while they develop their business.”