Mumbai-based ID verification and onboarding solutions company IDfy, has raised a capital of Rs 86 crore in its series D round of funding led by New York Stock Exchange listed firm TransUnion and early stage VC firm, Blume Ventures.
IDfy (Baldor Technologies Pvt. Ltd.) builds technology products and solutions that accurately authenticate entities. This helps businesses prevent fraud and engage with verified entities with the least amount of friction.
The startup said that it plans to use this funding to strengthen its product offerings and expand its business and operations. IDfy is growing its business internationally. During the last six months, IDfy has been helping companies in South East Asia and the Middle East onboard verified merchants and customers in sectors like payments, e-commerce, and mobility. It has enabled more than 70 million verifications for more than 500 clients and consistently ranks amongst Asia’s Top 5 Regulatory Technology companies, according to an official statement.
With an acceleration in digital payments, online shopping, remote work trends, there is a heightened exposure to frauds especially with an increase in the volumes of transactions. IDfy claims to bridge the trust deficit by ensuring that all parties are sure of each other’s identities and credentials.
IDfy’s AI-based platform is used by organisations to streamline and automate their KYC, employee and merchant onboarding. The company’s APIs are incorporated into onboarding journeys where identity and background authentications are required to establish trust.
“A billion more people globally are expected to enter the formal economy over the next 5 years. Our partnership with TransUnion gives us the chance to drive this change at a global scale. Blume Ventures has believed in us from day one. We are happy to have their continued support in the next, most exciting phase of our journey,” Ashok Hariharan, Founder and CEO, IDfy, said.
IDfy’s solutions are applied across banks and financial institutions, e-commerce, online marketplaces, telecom, gaming, and the on-demand economy. IDfy’s clients and partners are spread across India, South East Asia and the Middle East. The list includes the likes of Amazon, Airbnb, HDFC Bank, Dream11, and VISA.
Karthik Reddy, Managing Partner at Blume Ventures added that accurate identification and verification of people is critical for our economy to progress as an estimated 400 million more Indians enter organised employment by 2025 and start accessing mainstream financial services.
“With a majority of these engagements being remote and virtual, we look at IDfy as an infrastructure play that will drive this growth. When we first invested in IDfy, they were already a pioneer in this sector. Our latest investment reaffirms our confidence in the company and its ability to direct digitisation in India as well as globally,” Reddy added.
As per IDfy’s analysis based on insights from research firm, Redseer, the market for digital authentications in India is expected to reach $2.4 billion by 2024. Globally, the market for fraud detection and prevention is estimated to reach $142 billion by 2028.
“At a time when consumers and businesses are increasingly transacting in a digital environment, a reliable basis for trust has never been in greater demand. With TransUnion’s investment in IDfy, we will be able to bring best-in-class onboarding technology to our customers, accelerating digital transformation and further helping strengthen trust, while also supporting economic resurgence and financial inclusion in India,” Rajesh Kumar, Managing Director & CEO at TransUnion CIBIL said.
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