Socure, provider of digital identity verification and fraud solutions, has been valued at $4.5bn following an oversubscribed $450m funding round.
The Series E round was led by Accel alongside funds and accounts advised by T. Rowe Price Associates, Inc. It also included two new investors, Bain Capital Ventures and Tiger Global, as well as participation from existing investors Commerce Ventures, Scale Venture Partners and Sorenson Ventures.
The $4.5bn valuation places Socure as the highest valued private company in the identity verification space, just seven months after its $1.3bn Series D round.
Socure’s predictive analytics platform applies artificial intelligence and machine learning techniques with trusted online/offline data intelligence from email, phone, address, IP, device, velocity, and the broader internet to verify identities in real time.
The company said it will accelerate its investments in product innovation, penetrate new markets including the public sector, as well as strive to attract and retain the best product, data science, and engineering teams in the world.
Now trusted by four of the five largest banks, seven of the ten largest credit card issuers, top Buy Now, Pay Later (BNPL) providers, top investment management firms, and crypto exchanges, Socure has experienced a 500% year-on-year increase in bookings. Other growth metrics include a 221% year-over-year customer growth and five consecutive quarters of record year-over-year revenue growth.
As a result of this high-growth, the RegTech company is reviewing a potential IPO, as well as other alternative growth routes.
Additionally, the identity verification leader is looking to expand in telehealth, gaming and e-commerce marketplaces, and is also reviewing public markets.
Johnny Ayers, founder and CEO of Socure, explained that identity fraud continues to be fuelled by the effects of the pandemic, as businesses and government agencies race to digitise, and more processes move online.
As a result, Ayers said there has been a surge in demand for identity verification services. Which are, he says, a “central requirement” for a successful digital transformation.
Amidst the race to digitise, Ayers continued, enterprises need to fuel their growth with new customers to remain competitive, “Particularly those that are hard to identify including the 45 million+ group of US citizens that are credit invisible, especially younger, thin-file 18-25 year olds and immigrants.”
Ayers explained that “…because it [Socure’s solution] optimises the verification of hard-to-identify segments, organisations can acquire and convert more customers, increasing business growth by seamlessly onboarding these previously unverifiable consumers.”
The issue of fraud prevention, however, is not confined to the US. A ubiquitous challenge worldwide, Socure has plans of global expansion across all industries.
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