Cybersecurity and AI-focused startup Deep Algorithm Solutions has successfully raised ₹10.8 crore in a seed funding round led by Unicorn India Ventures. The investment, which also saw participation from several angel investors, is earmarked to accelerate the company's market initiatives in India and Southeast Asia, and to bolster its artificial intelligence and fraud analytics capabilities. This funding infusion arrives at a critical time, as businesses across the globe, and particularly in the rapidly digitizing Asian market, grapple with increasingly sophisticated cyber threats. The company plans to use the capital to scale its engineering and threat intelligence teams, expand integrations with key enterprise platforms, and enhance its core technologies.

Founded in December 2021 by JP Mishra, Deep Algorithm Solutions has positioned itself at the intersection of cybersecurity and artificial intelligence, with a specific focus on preventing fraud within digital financial ecosystems.[1][2] The company's flagship products include 'adapIDAI', an adaptive behavioral intelligence identity security risk engine, and 'BotShield', a tool designed to prevent zero-day attacks, mitigate Distributed Denial of Service (DDoS) attacks, and provide runtime application security.[1][2] These offerings leverage cutting-edge technologies like behavioral biometrics to differentiate between legitimate users and malicious actors, a critical capability in today's threat landscape.[2] The company's focus on indigenous AI development for solving complex digital identity security and fraud prevention problems is a key part of its strategy.[3] Deep Algorithm has already completed a live deployment at a government organization and is in discussions with several Indian banks and fintech firms.[1][2] The company also received a patent from the Government of India in March 2024 and has filed for an international patent.[4][5]

The fresh capital will be instrumental in executing Deep Algorithm's ambitious expansion plans. The company intends to accelerate its go-to-market activities in India and Southeast Asia, two regions experiencing rapid digital transformation and a corresponding surge in cybercrime.[6][2] To support this, the startup is expanding its sales presence in key Indian financial hubs like Mumbai and Bengaluru.[4][3] Beyond India, the company is in advanced talks with potential clients in Kenya, South Africa, and the United Arab Emirates, signaling a broader global ambition.[6][4] In the next 12 to 18 months, Deep Algorithm plans to launch a commercial Software-as-a-Service (SaaS) model aimed at mid-market players, expand to two international markets, and roll out an analytics dashboard for fraud and risk teams.[1][2] A significant portion of the funding will also be dedicated to strengthening its research and development efforts, particularly in the area of agentic AI for fraud resolution.[1][2]

The investment in Deep Algorithm Solutions comes amidst a booming cybersecurity market in the Asia-Pacific region. India's cybersecurity market, in particular, is projected to experience substantial growth, driven by factors such as the increasing volume of data breaches and stricter data protection regulations like the Digital Personal Data Protection Act (DPDPA).[7] The market is forecast to grow from USD 5.56 billion in 2025 to USD 12.90 billion by 2030, with the Banking, Financial Services, and Insurance (BFSI) sector being the largest spender.[7] Similarly, the broader Southeast Asian cybersecurity market is expected to reach USD 53.1 billion by 2033, fueled by the rising frequency and sophistication of cyber threats.[8] This market growth underscores the critical need for advanced security solutions like those offered by Deep Algorithm. The integration of AI into cybersecurity is a major trend, enabling more intelligent and automated threat detection and response.[9] AI-driven fraud detection, in particular, is moving beyond traditional rule-based systems to leverage machine learning and deep learning to identify complex and evolving fraud patterns in real-time.[10][11]

In conclusion, the ₹10.8 crore seed funding round for Deep Algorithm Solutions highlights the growing investor confidence in AI-powered cybersecurity solutions tailored for the challenges of the digital financial landscape. With a clear roadmap for product development and market expansion, the company is well-positioned to capitalize on the surging demand for robust fraud prevention technologies in India and Southeast Asia. The strategic focus on behavioral AI and advanced analytics, coupled with plans for a scalable SaaS model, suggests a forward-looking approach to tackling the dynamic and ever-evolving world of cyber threats. The success of startups like Deep Algorithm will be crucial in safeguarding the integrity of the burgeoning digital economies across the region.