IDnow secures $40M in funding to accelerate growth of its Identity Verification-as-a-Service (IVaaS) platform

IDnow, a tech startup that provides Identity Verification-as-a-Service (“IVAAS”) solutions, has secured $40 million growth equity investment to accelerate growth of its IVAAS Platform in Europe. The funding, which came from Corsair Capital LLC, brings the startup total investment to over $53 million. In conjunction with the funding, IDnow also announced that Raja Hadji-Touma and Edward Wertheim, Principal at Corsair, will join its board of directors.

Founded in 2014 by Armin Bauer, Dennis von Ferenczy, Felix Haas, and Sebastian Baerhold, IDnow provides advanced machine-learning technology for its Identity-as-a-Service platform that can verify in real time. IDnow’s unmanipulable identity verification is used across industries conducting online customer interactions that require a high degree of security. IDnow uses artificial intelligence to check all security features on ID documents and can, therefore, reliably identify forged documents. Potentially, the identities of more than 7 billion customers from 193 different countries can be verified in real-time. In addition to safety, the focus is also on an uncomplicated application for the customer.

Since its inception in 2014, IDnow has grown and integrated its portfolio of identity products onto a single platform, serving as a highly effective solution across different sectors and jurisdictions. Corsair’s investment will support IDnow as it expands its product range and captures greater market share throughout Europe, with immediate plans to open new offices in France and the UK.

“We are thrilled to have Corsair as a long-term partner and look forward to benefitting from the firm’s deep sector experience and strong global network. IDnow is well-positioned to capture greater market share in Europe and beyond, as we continue to lead the way in the growing digital identity verification space,”  Andreas Bodczek, CEO of IDnow, said.

Raja Hadji-Touma, Partner at Corsair Capital, said: “We are delighted to invest in IDnow and look forward to partnering with its management team to drive its next phase of growth. Our investment is the result of a thematic focus on the digital revolution transforming the financial industry. The business is well positioned to provide innovative and effective solutions addressing pressing digital security and fraud prevention needs across the European market and beyond.”

IDnow currently has over 250 customers including leading international companies from various industries such as Bank of Scotland, BNP Paribas, Commerzbank, eventim, Raisin (Weltsparen), Sixt, solarisBank, Telefonica Deutschland, UBS, Western Union, and Wirecard as well as fintechs such as Fidor, N26, smava, and wefox.