Cybersecurity and AI startup Deep Algorithm Solutions has raised 10.8 crore rupee (US$1.3 million) in a seed round led by Unicorn India Ventures, with participation from angel investors.

The funds will be used to grow its engineering and threat intelligence teams, boost market activities in India and Southeast Asia, and enhance its fraud analytics and behavioral AI engine.

The company also plans to integrate its solutions with platforms like Azure AD and Okta.

Founded in December 2021 by JP Mishra, Deep Algorithm focuses on fraud prevention in digital financial ecosystems.

Its key products include adapIDAI, a behavioral identity security engine, and BotShield, which offers zero-day attack protection, DDoS mitigation, and runtime application security.

The startup has implemented solutions with a private bank and a government agency, completed several proof-of-concept projects, and received a patent from the Indian government in March 2024.

🔗 Source: Deep Algorithm Solutions

🧠 Food for thought

1️⃣ India’s cybersecurity market poised for explosive growth amid global digital transformation

Deep Algorithm’s funding comes at a pivotal time when India’s cybersecurity sector is gaining significant momentum in the global landscape.

According to NASSCOM and DSCI’s roadmap, India’s cybersecurity market is projected to reach $35 billion by 2025, representing about 10% of the anticipated $350-400 billion IT industry 1.

This growth trajectory aligns with global trends, as the worldwide cybersecurity market is expected to reach $207.77 billion by 2024, with a compound annual growth rate of 12.63% through 2029 2.

The investment in Deep Algorithm reflects a broader pattern of increased funding in the cybersecurity sector, similar to the surge seen in other regions like Israel, where cybersecurity firms raised $4 billion in 2024, more than double the previous year 3.

For startups like Deep Algorithm, this expanding market represents both opportunity and intensifying competition, particularly as established IT giants like TCS, Infosys, and Wipro actively acquire cybersecurity startups to enhance their capabilities 4.

2️⃣ Behavioral intelligence emerging as the frontier in fraud prevention

Deep Algorithm’s focus on adaptive behavioral intelligence for identity security highlights a critical evolution in cybersecurity approaches beyond traditional methods.