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Unbound raises $4 million to bolster AI security platform, eyes talent and product expansion

By Advanced AI EditorJune 11, 2025No Comments2 Mins Read
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Unbound, a startup focused on helping enterprises use generative AI tools securely and responsibly, has raised $4 million in seed funding led by Race Capital, with participation from Wayfinder Ventures, Y-Combinator, Massive Tech Ventures, and others. A large part of the capital will be directed towards enhancing product development and hiring top talent.

“Our primary focus is the product and R&D. We’ll be spending a lot of money on enhancing the product and making it robust so that enterprises can trust us,” said Rajaram Srinivasan, Co-Founder and CEO of Unbound, in an interview to CNBC-TV18. The company plans to deploy a significant portion of this capital in India, particularly to grow its engineering and go-to-market teams in Bangalore.

Srinivasan added that the company is deliberately maintaining a lean but high-calibre team. “You don’t need to have hundreds of employees to get to where you want to be. Our bar for hiring is top-notch, and we’re so proud of the engineers who have helped us build the product,” he said. Unbound is currently looking to increase its Bangalore headcount by 50% in the near term.

The company, which launched operations recently, is already seeing strong early traction. Over 500 users, primarily from mid-market startups and a few large enterprises, are already using the platform to manage AI governance across tools like coding assistants, document platforms, and chat interfaces. The company is targeting at least 3x growth this year.

The AI governance market, according to Srinivasan, has exploded from virtually nothing to nearly $900 million in size, growing at around 45–50% annually. He believes this validates the need for solutions like Unbound, which aims to close the critical security gaps in how enterprises interact with AI systems.

Srinivasan, who earlier led data security at Palo Alto Networks, said the shift from one-way internet consumption to two-way interaction with AI systems raises new security risks. “Now you’re actively sharing more information with it, and that makes what we’re building at Unbound all the more important,” he said.

Watch the video for more

(Edited by : Ajay Vaishnav)



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