IDfy raises Rs 476 crore Series F round led by Neo Asset Management

IDfy, a trust and regulatory technology platform, has raised Rs 476 crore (about $53 million) in a Series F funding round. The round included both new investment (primary) and share sales by existing investors (secondary).

The funding was led by Neo Asset Management through its Neo Secondaries Fund. Other existing investors who participated include Blume Ventures, Analog Capital, Elev8, indiamart, and Kae Capital.

The company will use the new investment money to make strategic acquisitions, enter new international markets, and improve and expand its products and services.

The secondary part of the funding round will allow early investors and employees to sell some of their shares and receive returns on their investment.

Read also- Anthropic Secures $30 Billion in Series G Round, Valued at $380 Billion Post-Money

“This secondary component provides an exit for our early backers and team members who believed in our vision when trust infrastructure wasn't yet a category,” said Ashok Hariharan, Co-founder and Chief Executive Officer of IDfy. 

“Digital economies run on trust; the moment it breaks, adoption stops. IDfy pioneered digital verification infrastructure and is now building a global privacy and trust stack that prevents fraud at scale and adapts to new-age risks,” said Hariharan. 

“IDfy has built something rare: three distinct yet complementary platforms, onboarding, risk, and privacy, that typically require enterprises to work with multiple vendors, and they've achieved this profitably at scale,” said Nitin Agarwal, Head of Private Equity at Neo Asset Management.

“Their platform-first approach and proven unit economics provide them with a clear competitive advantage in consolidating what remains a highly fragmented global market,” he added.

Hemant Daga, Co-Founder and Chief Executive Officer of Neo Asset Management, said the investment reflects confidence in the company’s execution. 

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“Ashok has built IDfy into a scalable, enterprise-grade business that reflects his clarity of vision and execution, positioning IDfy to become the trust layer for the next billion digital users,” said Daga. 

Founded in 2011, IDfy provides a platform called TrustStack. It helps businesses with digital onboarding, reducing risks, detecting fraud, and managing data privacy. The company serves over 500 large clients across more than 10 industries and carries out more than 500 million verification checks every year. It operates in seven countries, including India, Southeast Asia, and the Middle East.

The new funding comes at a time when demand for identity verification, fraud detection, and privacy solutions is increasing worldwide. This growth is mainly due to the rise in digital transactions and stricter regulatory requirements.

In India, the implementation of the Digital Personal Data Protection Act and higher government spending on digital infrastructure have helped boost the growth of the regulatory technology (regtech) industry.

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