10-06-2025
Unbound Raises USD 4 Million to Power Enterprise AI Security and Governance
Unbound plans to invest over USD 1 million to expand its team in India and further build its AI security platform
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Bengaluru-based enterprise AI security startup Unbound has raised USD 4 million in seed funding to accelerate its efforts in model orchestration, data protection, AI integration, and open-source LLM adoption. The round was led by Race Capital, with the startup aiming to address the growing need for secure, scalable AI governance solutions across enterprises.
Founded in 2023 by Rajaram Srinivasan (ex-Palo Alto Networks, Imperva) and Vignesh Subbiah (ex-Adobe, Tophatter, Shogun), Unbound is tackling a critical gap in how organisations control the use of generative AI tools. As employees increasingly rely on AI copilots for coding, content creation, and analytics often without IT oversight, Unbound's platform ensures enterprise security without interrupting productivity.
The platform integrates directly with popular tools like Cursor, Roo, and internal copilots, offering real-time monitoring, redaction, and prompt rerouting. Instead of blocking AI use, Unbound intelligently redirects sensitive queries to secure, self-hosted, open-source LLMs, while allowing low-risk prompts to pass through. This approach enables up to 70 per cent savings on AI infrastructure costs and significantly reduces the risk of data leaks.
In one use case, a tech company safely rolled out Gemini 2.5 to over 100 engineers in under a week using Unbound. The platform has already prevented more than 7,000 instances of potential data leaks, including exposure of credentials and personal information.
Edith Yeung, General Partner at Race Capital, said, "Unbound represents a new class of AI infrastructure, one that blends visibility, safety, and cost-efficiency into a single platform. Their infrastructure-first approach is exactly what enterprises need as they scale AI use responsibly."
Unbound plans to invest over USD 1 million to expand its team in India and further build its AI security platform. With increasing demand for secure AI deployment, particularly in sectors like healthcare and technology, the company sees India as a key growth market.
The startup will also deepen its ecosystem integrations and support enterprises in orchestrating internal models based on custom policies and compliance needs. Its solution allows companies to retain control over how and where AI is used without sacrificing speed or safety.
