Deep Algorithm Raises Rs 16 Cr in Pre-Series A Round

Deep Algorithm Secures Rs 16 Crore in Pre-Series A to Power AI-Driven Cybersecurity Across Global Markets

India's cybersecurity landscape is witnessing a sharp transformation, and one Hyderabad-based startup is sitting right at the centre of it. Deep Algorithm, an AI-powered cybersecurity and digital trust company, has successfully closed a Rs 16 crore (approximately $1.7 million) pre-Series A funding round led by Unicorn India Ventures. The round also drew participation from SB Investment based in the UAE, along with Prakash Govindan, CEO of Gradiant (USA), and Himanshu Singhal, CEO of inMorphis (India). This latest AI funding news underscores a growing wave of investor confidence in enterprise-grade security solutions built on artificial intelligence — especially those targeting identity fraud, behavioral threats, and real-time threat intelligence.

The development comes on the back of Deep Algorithm's earlier raise of Rs 10.8 crore from Unicorn India Ventures, making the VC firm a repeat backer in the company. The back-to-back rounds tell a compelling story of sustained growth and a product vision that appears to resonate strongly with both domestic and global investors. With the fresh capital now in hand, Deep Algorithm is gearing up for a significant expansion phase — one that goes beyond India's borders and into markets where AI-powered identity security is in high demand.

From Hyderabad to the World: Deep Algorithm's Global Expansion Blueprint

The capital raised in this pre-Series A round will be deployed across three key areas. First, the company plans to accelerate its entry into international markets, particularly targeting regions where digital banking, fintech infrastructure, and enterprise security requirements are growing rapidly. Second, it intends to pour resources into product development, introducing next-generation AI security features that go beyond what is currently available on the platform. Third, Deep Algorithm aims to significantly strengthen its identity security capabilities, building deeper intelligence layers into its core products.

This kind of AI funding news marks more than just a financial milestone — it reflects the strategic priorities of a company that sees global enterprise security as the frontier it wants to own. The founders have been deliberate about building products that not only detect threats but predict and neutralize them before damage is done. The international push will likely target markets in Southeast Asia, the Middle East, and North America, where companies are under increasing regulatory and operational pressure to secure digital identities and prevent financial fraud at scale.

Unicorn India Ventures, as the lead investor across both rounds, has clearly placed a long-term bet on Deep Algorithm's direction. The firm, known for backing early-stage Indian startups with global ambitions, has shown consistency in supporting the company as it matures from an early concept into a revenue-generating enterprise security platform. The participation of cross-border investors like SB Investment from the UAE further signals that Deep Algorithm's story is gaining traction well beyond the Indian startup ecosystem.

Understanding the Products: adapID-AI and BotShield-AI

At the heart of Deep Algorithm's value proposition are two flagship products that target very different but equally critical dimensions of enterprise cybersecurity. The first is adapID-AI, which the company describes as a behavioral identity intelligence platform. Rather than relying on static credentials like passwords or PINs, adapID-AI continuously monitors how a user interacts with a system — tracking behavioral patterns such as typing speed, finger pressure, device-holding angles, and navigation habits. When something deviates from the established behavioral profile, the platform raises a flag in real time.

This approach, known as Continuous Identity Risk Management (CIRM), is particularly valuable in financial services, where the difference between a legitimate transaction and a fraudulent one can hinge on subtle behavioral cues that static authentication systems simply cannot detect. adapID-AI essentially builds a living, breathing behavioral fingerprint for each user and uses that fingerprint to identify threats like credential compromise, lateral movement inside a network, or unauthorized access by someone who has stolen login details. The system works quietly in the background, continuously learning and adjusting without disrupting the user experience.

The second product, BotShield-AI, addresses the threat landscape from a different angle. It is designed for zero-day threat prevention — meaning it can detect and respond to vulnerabilities that have never been seen before and for which no patch yet exists. On top of that, BotShield-AI handles DDoS mitigation, protecting enterprise applications from being overwhelmed by coordinated traffic attacks, and also provides runtime application security, which means it monitors applications as they run and intervenes if an attack is detected mid-session. Deep Algorithm has also introduced a third layer called BotShield AI CTEM, an autonomous agentic AI platform designed for continuous threat exposure management, bringing a self-evolving defense capability into the product suite.

Together, these three tools position Deep Algorithm as a full-spectrum AI security provider — one that can protect organizations not just from known threats, but from the kind of novel, sophisticated attacks that are becoming increasingly common as cybercriminals themselves start leveraging artificial intelligence.

Revenue Trajectory and Enterprise Clientele: The Numbers Behind the Growth

Perhaps the most striking aspect of this AI funding news is not just the amount raised, but the revenue trajectory that justified it. Deep Algorithm claims to have recorded a threefold increase in its closing Annual Recurring Revenue (ARR) from FY25 to FY26. Even more ambitiously, the company projects that this number will grow twenty times by FY27 — a target that, while aggressive, is backed by a strong and growing enterprise client base.

The company currently serves clients across Banking, Financial Services and Insurance (BFSI), fintech, and enterprise sectors. Its known client list includes Canara Bank, Karnataka Bank, DCB Bank, CSB Bank, the National Capital Region Transport Corporation (NCRTC), and BVH. The presence of public sector banks like Canara Bank and NCRTC — a government-backed urban transit body — on the client roster is particularly significant. It indicates that Deep Algorithm's solutions have passed the scrutiny of regulated, compliance-heavy institutions that cannot afford to take shortcuts on security.

The BFSI sector, by its nature, is one of the most aggressively targeted industries for cybercrime globally. Fraudsters, state-sponsored actors, and organized crime groups all train their efforts on banks and financial platforms, knowing that a successful breach can yield enormous financial and data-related rewards. Deep Algorithm's focus on this vertical is therefore not just commercially smart — it is strategically essential. By embedding behavioral intelligence and autonomous threat detection into the systems used by banks and fintech firms, the company is directly addressing the highest-risk, highest-stakes environment in enterprise security.

The Bigger Picture: AI Funding in India's Cybersecurity Sector

This round of AI funding for Deep Algorithm sits within a broader narrative about how Indian startups are increasingly attracting venture capital for artificial intelligence-driven solutions that solve real enterprise problems. For much of the past decade, the Indian startup ecosystem was dominated by consumer internet businesses — e-commerce platforms, food delivery apps, and edtech companies. But that dynamic is shifting. Investors are increasingly drawn to deep-tech and AI-native companies that build defensible technology rather than simply scaling a marketplace.

Cybersecurity, in particular, has emerged as one of the most attractive sub-sectors within this broader AI funding wave. As enterprises in India digitize at a rapid pace and as cross-border digital transactions become the norm, the attack surface for bad actors has expanded enormously. The demand for sophisticated, AI-powered security tools has never been higher — and startups like Deep Algorithm that have both the technological depth and the enterprise sales traction are well-positioned to capture significant market share.

Unicorn India Ventures, as a repeat investor in Deep Algorithm, has been at the forefront of this trend. The firm's decision to double down on the company is a vote of confidence not just in the product but in the founding team's ability to execute. The additional participation from international investors like SB Investment from the UAE broadens the capital base and could potentially open doors to Gulf Cooperation Council (GCC) markets, where digital banking and identity verification requirements are evolving quickly under new regulatory frameworks.

For The AI World, developments like this one are a reminder of how AI funding news from India is no longer limited to consumer applications or software-as-a-service businesses. The action is increasingly in the infrastructure layer — in the tools that protect digital systems, verify identities, and keep the engines of the digital economy running safely. Deep Algorithm's pre-Series A round is a clear example of this shift in motion.

What Lies Ahead for Deep Algorithm

Looking forward, the company is preparing to launch the adapID AI CIRM Platform for Agentic Identity — a next-generation product specifically designed to secure AI agents operating within enterprise environments. As organizations increasingly deploy autonomous AI tools for tasks like customer service, back-office automation, and financial transactions, the question of how to verify and monitor the behavior of these agents is becoming critical. Deep Algorithm appears to be one of the few companies thinking seriously about this problem and building a product to address it.​

The FY27 projection of twenty times ARR growth is undeniably ambitious, but it is grounded in a few key realities. The company already has a proven product being used by regulated financial institutions. It has a venture capital partner willing to invest in it twice. And it is entering a market — AI-driven identity security — that is growing faster than almost any other segment of the enterprise technology landscape. If Deep Algorithm can execute on its international expansion plan and successfully launch its agentic identity security platform, the numbers it is projecting may not seem unrealistic at all.

This is a space where The AI World will be watching closely. As India produces more AI-native companies with genuine global potential, the AI funding news coming out of the country reflects an ecosystem that is maturing, deepening, and starting to compete on the same stage as the world's leading technology markets.