Mumbai-based Identification verification startup raised 27 million dollars

Mumbai-based Identification verification startup raised 27 million dollars

At a time when the Global Tech sector is facing stagnant growth and employees are facing job losses, the Indian tech industries are booming.

Recently, a Mumbai-based Identification verification startup IDfy raised 27 million dollars in total primary and secondary funding from top firms like Elev8 Venture Partners, KB Investment, and Tenacity Ventures.

On its LinkedIn page, IDfy claims to "help enterprises eliminate fraud and establish trust using tech-powered products and solutions for KYC, KYB, Background Verification, Risk Mitigation, Digital Onboarding and Digital Privacy."

IDfy is a top Indian identity verification company that provides services to help other organizations like banks and e-commerce sites verify the identity of a person. They are crucial for preventing fraud and theft.

While applying for EMIs through certain services, we are often asked to take a picture of ourselves after entering the details like Aadhar card number and Account number. The picture that is taken is then compared to the picture on the Aadhar card servers to make sure the person applying is genuine and not a fraud. This complex process is carried out by services like IDfy.

The funds raised by the company will be used in its expansion programs, product development,  and to provide a better experience for the users, the company said in a statement on Wednesday 6th March 2024.

"Investment from Elev8 and Tenacity is a strong validation of our vision and capabilities. IDfy’s mission is to eliminate fraud and establish trust," said Ashok Hariharan, co-founder and chief executive, of IDfy.

IDfy was founded in 2011 by Vineet Jawa and Ashok Hariharan. Since then it has grown to become one of the major players in the field of risk management both nationally and internationally. 

IDfy provides services to India's top companies and crucial services including but not limited to KYC, KYB, background checks, risk mitigation, digital onboarding, and privacy solutions. The company has a big list of clients that includes HDFC Bank, AxisBank, Zomato, PhonePe, Paytm, Hindustan Unilever Ltd, and American Express, managing over 60 million verifications monthly. It also provides its services to millions of users in the international markets. 

In a statement, Elev8 said it was drawn to IDfy's strong leadership team, its product-centric approach, and its alignment with India's digitization story. “The COVID-19 pandemic accelerated the adoption of cloud-based services, driving a surge in digitization and a shift in consumer behavior. This, coupled with the supportive regulatory environment fostered by the India Digital Stack initiative, creates a fertile ground for IDfy's continued growth."

“We have known Ashok and IDfy for several years and are impressed with how they have built great products and a great brand. We believe that trust platforms from India will scale internationally and IDfy can compound meaningfully with these global tailwinds. We look forward to a fruitful partnership with the management team to build IDfy in its next phase of growth," added Rohit Razdan, managing Director of Tenacity Ventures.

The company plays a major role in one of the most important sectors in India, making life easier for millions of Indian and international customers. As of 2021, the company is valued at 66.9 million dollars. It has brought significant investments to India and sets a major example of showing the unstoppable growth of India and the potential of talented Indians who are only limited by their creative minds.