Private equity firm Main Capital Partners has acquired a majority stake in mobile identity verification software developer InnoValor.
The size of the investment was not revealed, but the deal was completed via Main Capital VII, a €1bn investment fund. The vehicle targets majority investments into companies with an enterprise value ranging between €25m and €250m.
InnoValor’s flagship product ReadID helps reduce fraud through its verification technology which reads NFC-chips present in identity documents. It also allows ID cards and passports to be verified via a smartphone for processes such as onboarding of new banking customers.
This solution is live in 18 countries and is used by banks, financial institutions, governments, border control authorities, electronic identification and digital signature trust services.
Main Capital Partners managing partner Charly Zwemstra said, “ReadID has already achieved great milestones in the development of first-class product technology and through winning a strong group of high-profile clients.”
The private equity firm plans to help InnoValor expand internationally and bolster its position in the market.
Zwemstra added, “An important part of the strategy is to invest more in product development as well as in strengthening marketing and sales processes and by opening offices in new geographies while strengthening their partner ecosystem. Additionally, a selective buy-and-build strategy will be explored to boost the product offering.”
The digital identity market is expected to boom over the coming years. A study from Juniper Research expects Revenue for digital identity marketplace vendors to exceed $53bn by 2026, doubling from the $26bn value in 2021.
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