Identity verification platform IDfy raises $27M led by Elev8, others

IDfy, a Mumbai-based identity verification platform, has raised $27 million in a Series E funding round led by Elev8 with participation from KB Investment and Tenacity Ventures

The funding would boost the company's global expansion and enhance product development. Founded in 2011 by Ashok Hariharan and Vineet Jawa, IDfy aims to combat fraud and establish trust across various sectors.

Broadening operational reach 

With this funding round, IDfy plans to solidify its standing and broaden its operational reach. The company, which is known for its integrated identity verification and digital onboarding platform, intends to use the funds to fuel its expansion plans and further develop its product offerings.

Ashok Hariharan, Co-founder and CEO of IDfy, said, “Investment from Elev8 and Tenacity is a strong validation of our vision and capabilities. IDfy’s mission is to eliminate fraud and establish trust. The funds will fuel our expansion plans and product development, enabling us to serve even more businesses and unlock opportunities for trustworthy people and businesses."

Providing solutions against evolving fraud

IDfy's technology-driven approach focuses on a wide array of verification processes, including KYC, KYB, and employee background checks, to mitigate risk and fraud. Utilizing AI/ML technologies and banking-grade security, IDfy claims that it conducts over 60 million verifications a month, impacting over 150 million lives.

Navin Honagudi, Managing Partner, Elev8 Venture Partners said, “We are thrilled to partner with IDfy as our first investment. The company’s innovative technology, experienced leadership team, and strong market fit position it for remarkable growth. We are confident that IDfy will play a crucial role in shaping the future of risk management in India and beyond.”

Growing client base and financial growth 

Currently, IDfy is serving over 1,500 clients across diverse sectors such as BFSI, FMCG, e-commerce, and gaming. HDFC Bank, AxisBank, and Zomato are some of its notable clients. 

The company's financial health appears robust, with a reported revenue of Rs 120 crore in FY23 and a profitable status since the same fiscal year. 

Rohit Razdan, Managing Director, Tenacity Ventures said, “We have known Ashok and IDfy for a number of years and are impressed 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.”