Key Points
- Deep Algorithm raises ₹16 crore in pre-series A round led by Unicorn India Ventures
- Company claims 3X revenue growth from FY25 to FY26 and projects 20X increase by FY27
- Funds to be used for international expansion and new AI-driven identity security platform
Hyderabad-based cybersecurity startup Deep Algorithm has raised ₹16 crore in a pre-series A funding round led by Unicorn India Ventures, the company announced on Thursday.
The investment will help the four-year-old firm expand into international markets and develop new products aimed at securing enterprises against identity fraud and threats from AI-powered attacks.
SB Investment from the UAE, Prakash Govindan, CEO of US-based Gradiant, and Himanshu Singhal, CEO of inMorphis India, also participated in the round.
Deep Algorithm builds software that continuously monitors how users and machines behave on enterprise networks to detect compromised accounts, insider threats and fraudulent access attempts.
This approach, which the company calls Continuous Identity Risk Management or CIRM, treats identity as a dynamic pattern of behaviour rather than a static set of credentials like passwords.
Banking and Government Clients
Founded in 2021, the company operates on a business-to-business model, selling to banks, financial technology firms and government bodies. Its clients include Canara Bank, Karnataka Bank, DCB Bank, CSB Bank, the National Capital Region Transport Corporation and BVH.
The company’s main product, adapID-AI, is a behavioural intelligence engine that models how users typically interact with systems. It flags unusual patterns that might indicate a stolen password being used, an employee accessing data they should not, or an attacker moving through a network.
Another product, BotShield-AI, protects applications against automated attacks, distributed denial-of-service attempts and previously unknown vulnerabilities, often called zero-day threats.
“We have always seen identity as dynamic rather than static, defined by continuous behavioural signals,” JP Mishra, founder and CEO, Deep Algorithm, said. “As threats evolve, particularly with the rise of agentic AI-driven attacks, behaviour becomes the new fingerprint.”
Revenue Growth and Future Plans
The company reported a threefold increase in its annual recurring revenue, a measure of predictable yearly income from subscriptions, from FY25 to FY26. It expects this figure to grow 20 times by FY27, according to Mishra.
Deep Algorithm is preparing to launch what it calls the adapID AI CIRM Platform for Agentic Identity. The product is designed to secure AI agents, software programmes that can act autonomously on behalf of users or organisations and are increasingly being deployed in enterprise settings.
The company describes it as the first solution built specifically for managing the security risks posed by such autonomous systems.
“Continuous monitoring of human-machine interactions is critical to securing the enterprise digital landscape,” Mishra said. “Agentic identity security is not just a capability; it represents the future of behavioural intelligence, and we are building the foundation for it.”
Anil Joshi, managing partner, Unicorn India Ventures, said the investment reflects growing enterprise demand for cybersecurity services as attackers use more sophisticated tools.
“Cybersecurity-as-a-service is witnessing increasing demand as threat actors evolve and raise the stakes with AI and agentic AI,” Joshi said. “Deep Algorithms is building products that address a growing enterprise blind spot, establishing trust, control and accountability for autonomous agents through context-aware behavioural identity.”
This is the second investment from Unicorn India Ventures in the company. Deep Algorithm previously raised ₹10.8 crore from the same investor.
Your Questions, Answered
What does Deep Algorithm do?
Deep Algorithm builds cybersecurity software that continuously monitors user and machine behaviour on enterprise networks to detect identity fraud, compromised credentials and insider threats. Its products serve banks, fintech firms and government bodies.
How much funding has Deep Algorithm raised in total?
Deep Algorithm has raised ₹16 crore in its latest pre-series A round. The company previously raised ₹10.8 crore from Unicorn India Ventures, bringing its total disclosed funding to ₹26.8 crore.
What is Continuous Identity Risk Management?
Continuous Identity Risk Management or CIRM is Deep Algorithm's approach to security that treats user identity as a dynamic pattern of behaviour rather than static credentials. It monitors how users interact with systems to detect anomalies that might indicate fraud or attacks.
Who are Deep Algorithm's clients?
Deep Algorithm serves banking, fintech and enterprise clients including Canara Bank, Karnataka Bank, DCB Bank, CSB Bank, the National Capital Region Transport Corporation and BVH.
