AI startup Deccan AI has raised $25 million in fresh funding as it looks to expand its enterprise-focused products and strengthen its platform capabilities.
The Series A round was led by growth equity firm A91 Partners, with participation from Susquehanna International Group (SIG) and Prosus Ventures, an existing backer.
The startup said the funds would be used to scale its tools for deploying, evaluating and improving AI systems in real-world business environments.
Founded by Rukesh Reddy, Deccan AI initially worked on data and model training for frontier AI laboratories. It has since shifted towards building a broader platform that combines data, reinforcement learning environments and human expertise to improve the performance of artificial intelligence systems.
The firm now offers products aimed at helping businesses manage AI systems end-to-end, rather than simply supplying training data. These include an evaluation suite designed to monitor whether models perform reliably in production, and a wider enterprise platform focused on automating back- and middle-office workflows using AI agents.
'We've reached a tipping point where the industry is moving past the chatbot phase. Getting an agent to work in a demo is one thing; getting it to handle high-stakes business logic is another,' Reddy said.
He added that although large language models have advanced rapidly, their probabilistic nature can lead to inconsistent outcomes in enterprise settings, where the cost of errors is high.
Deccan AI is targeting large organisations, including Fortune 500 companies, with global capability centres seen as a key entry point. Its customers include Google DeepMind and Snowflake, and the company says it currently serves around 10 clients while running several dozen active projects.
The startup has launched products such as 'Helix', a hybrid human-plus-automated evaluation suite, and 'EnterpriseOS', which automates operational workflows.
A91 Partners, which has previously backed companies including Blue Tokai Coffee, Healthkart, Aye Finance and Giva, said this marked its first investment in an artificial intelligence business.
'As the world moves from experimentation to execution, the need for Deccan's evaluation and monitoring layer will become non-negotiable,' said Kaushik Anand, a partner at the firm.
Deccan AI is also expanding its physical presence, with plans to open a new office in Bengaluru focused on enterprise operations, alongside its existing bases in San Francisco and Hyderabad. The Bengaluru team is expected to grow to between 20 and 30 employees over the coming year.
Reddy said the shift towards enterprise deployment is also changing the nature of work in the sector, with new skills such as prompting, evaluation and system oversight becoming increasingly important.