Identity verification startup IDfy aims to surpass Rs 200 crore in revenue by the end of FY25. The Mumbai-based company recorded Rs 145 crore in operational revenue in FY24, up from Rs 108 crore in FY23 and Rs 56 crore in FY22. This growth will be fuelled by expanding its presence in Southeast Asia, including Indonesia and the Philippines, as well as West Asia.
“Large developing economies present challenges similar to what India faced in the last decade,” said Ashok Hariharan, CEO and co-founder of IDfy. The startup believes its technology platform, proven in India, can be scaled across large countries in Southeast Asia, Africa and South America, which have regulatory frameworks similar to India’s.
Founded in 2011 by Hariharan and Vineet Jawa, IDfy helps businesses meet regulatory compliance requirements, detect fraud, verify identities, mitigate risks, perform background checks and automate KYC, employee and merchant onboarding. The company claims to offer 140 AI/ML-based APIs to automate onboarding and fraud detection processes for its clients.
In January this year, IDfy raised $45 million in a Series E funding round, a combination of primary and secondary investments, led by Analog Ventures, Elev8, Tenacity Ventures, IndiaMart and KB Investment. This capital is being used to expand IDfy’s product offerings in data protection and identity verification and support its global expansion. In a Series D round led by TransUnion and Blume Ventures in October 2021, the startup raised $11.5 million. Speaking on future funding plans, Hariharan said, “While we do not require funding to sustain our operations, we are open to exploring fundraise to facilitate inorganic growth opportunities.”
The startup is also working to help organisations comply with the Digital Personal Data Protection Act (DPDPA) through its consent governance platform, Privy, designed to streamline compliance for its clients. Currently, IDfy claims to manage over 60 million verifications monthly for 1,500 clients across industries like BFSI, FMCG, e-commerce, and gaming. Key clients include HDFC Bank, Amazon, Axis Bank, Zomato, PhonePe, Paytm, Hindustan Unilever and American Express.
The company turned profitable in FY23, reporting a profit of Rs 4 crore, reversing an Rs 18 crore loss in FY22. IDfy anticipates sustaining its profitability in the coming years.