Betting on Identity as the New Security Perimeter
Hyderabad-based Deep Algorithm Solutions has secured ₹16 crore (approximately $2 million) in a Pre-Series A funding round led by Unicorn India Ventures, as enterprises confront rising identity-based cyber threats in an AI-driven landscape.
The round also saw participation from SB Investment (UAE), Prakash Govindan, CEO of Gradiant (U.S.), and Himanshu Singhal, CEO of inMorphis (India). The capital will be used to expand into international markets, accelerate product development, and strengthen its platform with next-generation features targeting identity-centric and agentic AI risks.
Founded in 2021, Deep Algorithm is positioning itself at the forefront of Continuous Identity Risk Management (CIRM), a category that treats identity as dynamic rather than static.
From Static Credentials to Behavioral Intelligence
Traditional cybersecurity frameworks focus heavily on perimeter defense and static credentials. Deep Algorithm’s model shifts the emphasis toward continuous behavioral analysis across human and machine identities.
Its flagship product, adapID-AI, functions as an adaptive behavioral intelligence engine that continuously models identity behavior across enterprise systems. The platform detects compromised credentials, lateral movement, insider threats, and anomalous access patterns before exploitation occurs.
In parallel, the company offers BotShield-AI, designed for zero-day threat prevention, DDoS mitigation, and runtime application protection. The platform also includes an autonomous CTEM (Continuous Threat Exposure Management) capability that simulates adversary behavior and deploys defensive responses without waiting for manual intervention.
As enterprises adopt AI agents into workflows, the complexity of identity management is expanding rapidly.
Preparing for the Agentic AI Era
Deep Algorithm is preparing to launch its adapID AI CIRM Platform for Agentic Identity, described as a first-of-its-kind solution built specifically for AI agents operating within enterprise systems.
Founder and CEO JP Mishra said the company views identity as “dynamic rather than static,” emphasizing that behavioral signals are becoming the new fingerprint in enterprise security. “As threats evolve, particularly with the rise of agentic AI-driven attacks, behavior becomes the new fingerprint,” he said.
The focus on agentic identity reflects a broader global concern: AI agents interacting autonomously with systems introduce new layers of risk, from automated fraud to privilege escalation vulnerabilities.
Enterprises increasingly require visibility not just into human users, but into AI-driven machine identities acting on their behalf.
Growth Metrics and Market Traction
Deep Algorithm reports a 3X increase in closing ARR from FY25 to FY26 and projects 20X growth by FY27. While forward-looking projections remain ambitious, the company has established traction in regulated sectors including BFSI, fintech, and government.
Its client roster includes Canara Bank, Karnataka Bank, DCB Bank, CSB Bank, NCRTC, and BVH. The firm is also conducting proof-of-concept deployments with additional banks, defense entities, and government organizations.
Identity-based threats such as account takeover (ATO) and social engineering continue to rise globally, particularly as AI enhances phishing sophistication.
Why Investors Are Leaning In
Anil Joshi, Managing Partner at Unicorn India Ventures, said cybersecurity-as-a-service demand is accelerating as threat actors adopt AI capabilities. He noted that enterprises face a growing blind spot around governance of autonomous agents and context-aware behavioral identity.
The investment reflects broader investor appetite for AI-native cybersecurity platforms that address evolving enterprise attack surfaces.
Globally, identity security has become one of the fastest-growing segments within cybersecurity, driven by remote work expansion, cloud adoption, and now AI agent deployment.
India’s Emerging Cybersecurity Ecosystem
India’s cybersecurity startup ecosystem is gaining international visibility, particularly in AI-driven risk detection and identity management.
As digital banking penetration increases and government digital infrastructure expands, demand for enterprise-grade identity protection solutions is intensifying.
Deep Algorithm’s international expansion ambitions suggest confidence that its behavioral biometrics and agentic identity frameworks can compete beyond domestic markets.
The Bigger Picture
The rise of generative AI and autonomous systems is reshaping enterprise risk models. Traditional security frameworks built around passwords and static permissions are increasingly insufficient.
Continuous identity risk management represents a shift toward behavioral context, anomaly detection, and automated response.
Deep Algorithm’s funding round underscores a structural change in cybersecurity priorities: trust is no longer a one-time authentication event.
