AI-native data security firm Matters.AI, has raised $6.25m in total funding to launch its flagship AI Security Engineer product.
The funding includes a $4.75m seed round co-led by Kalaari Capital and Endiya Partners, with participation from Better Capital, Carya Venture Partners, and several cybersecurity angel investors. It also comprises an earlier $1.5m pre-seed round led by Better Capital and Carya Venture Partners.
Founded by security engineers, Matters.AI has developed a self-learning, AI-native data protection system designed to function like an autonomous security engineer. The platform uses semantic graph intelligence and predictive reasoning to detect, understand, and protect data across hybrid environments — from cloud to SaaS applications and endpoints — before any breach occurs.
The company plans to use the new capital to advance research and development in predictive defence, expand operations in the US, and scale its engineering teams to meet growing enterprise demand. This expansion aims to address the increasing complexity of managing data across multi-cloud ecosystems and AI-driven workflows.
Matters.AI’s platform enables organisations to discover and protect sensitive data wherever it resides, integrating seamlessly into existing enterprise architectures. Unlike traditional Data Loss Prevention (DLP) and Data Security Posture Management (DSPM) tools, the company’s system consolidates data discovery, lineage, and enforcement into one context-aware policy layer.
“The market doesn’t need another tool or alert. Matters.AI instead provides an intelligent AI interface that understands context and acts before misuse occurs,” said Matters.AI CEO and co-founder Keshava Murthy. “The future of security is AI-native. That’s why we built the AI Security Engineer to keep data protection always-on and self-learning.”
“Security teams tell us their biggest gap is between visibility and enforcement. Matters unifies discovery, lineage, and intent-aware controls into a single policy plane so organisations can prevent data exfiltration across cloud, SaaS, endpoints, and AI tools – while cutting alert noise,” said Endiya Partners managing director Sateesh Andra. “We’re delighted to co-lead this round with Kalaari Capital, and back Keshav, Harsh, and Dhiraj as they execute on this AI-native architecture.”
“Our system operates like an autonomous cockpit,” said Matters.AI CTO and co-founder Harsh Sahu. “It learns continuously, correlating telemetry from endpoints, SaaS, and cloud to predict and contain data misuse in real time.”
“As privacy regulations tighten worldwide and AI adoption accelerates, enterprises face an urgent need for intelligent, autonomous data protection,” said Kalaari Capital partner Sampath P. “Matters.AI is building the control layer for this new reality, a system that learns, adapts, and secures data while ensuring continuous compliance in an AI-driven world.”
The company’s previous $1.5m pre-seed round helped establish its initial research foundation and team, paving the way for its AI Security Engineer’s commercial development.
Read the full RegTech Analyst post here.
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