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Regulatory technology startup IDfy has raised Rs 86 crore in its Series D round of funding led by TransUnion and Blume Ventures, the firm announced on Thursday.
The Mumbai-based startup specialises in building products and solutions that authenticate entities for businesses to prevent fraud as well as help them engage with verified entities. The solutions include Know Your Customer checks, employee and merchant onboardings.
The startup plans to use the newly infused funds to strengthen its product offerings and expand its business and operations, it said in the press release. The firm is also expanding its business internationally partnering with firms in South East Asia as well as the Middle East to provide merchant onboarding services.
The company claims to have performed more than 70 million verifications for over 500 businesses which also includes firms such as Amazon, Airbnb, HDFC Bank, Dream11, and Visa. The firm counts institutional investors MegaDelta Capital, BEENEXT, Dream Incubator, NB Ventures, and Blume Ventures as existing backers.
“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,” said Ashok Hariharan, founder and CEO, IDfy. “We are happy to have their continued support in the next, most exciting phase of our journey.”
According to a RedCore report, 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. In India firms such as Signzy, FixNix and Avantis compete in this space with IDfy.
According to Karthik Reddy, managing partner at Blume Ventures, accurate identification and verification of people is critical for economic progress as more and more Indians enter the formal employment sector.
“With a majority of these engagements being remote and virtual, we look at IDfy as an infrastructure play that will drive this growth,” said Reddy. “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.”
Rajesh Kumar, MD and CEO at TransUnion CIBIL said that the investment will also help CIBIL with onboarding technology for its customers. “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,” he said.
“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,” he added.
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