IDfy, a regulatory technology startup, said on Thursday that it has raised Rs 86 crore in a Series D round of funding led by TransUnion and Blume Ventures.
The Mumbai-based startup is focused on developing products and solutions that assist organisations in authenticating entities in order to avoid fraud and facilitate interactions with verified entities. Know Your Customer (KYC) checks, employee and merchant onboarding are all included in the solutions.
The company said in a statement that it intends to use the freshly raised cash to bolster its product offerings and expand business and operations. Additionally, the company is extending its worldwide presence by working with organisations in South East Asia and the Middle East to provide merchant onboarding services.
The company claimed that it has verified over 70 million transactions for over 500 organisations, including Amazon, Airbnb, HDFC Bank, Dream11, and Visa. MegaDelta Capital, BEENEXT, Dream Incubator, NB Ventures, and Blume Ventures are among the firm’s existing investors.
Ashok Hariharan, founder, and CEO of IDfy said that through cooperation with TransUnion, it has the opportunity to accelerate this transition on a worldwide scale. “From day one, Blume Ventures trusted in us,” he said. “We are happy to have their continued support in the next, most exciting phase of our journey.”
The market for digital authentications in India is estimated to reach $2.4 billion by 2024, according to a RedCore analysis. Globally, it is anticipated that the market for fraud detection and prevention will reach $142 billion by 2028. In India, IDfy has competition from Signzy, FixNix, and Avantis.
According to Karthik Reddy, managing partner at Blume Ventures, precise identification, and verification of individuals is crucial for economic success as an increasing number of Indians enter the formal labour force.
“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.”
According to Rajesh Kumar, MD, and CEO of TransUnion CIBIL, the investment will also assist CIBIL with customer onboarding technology.
“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,” Kumar stated.