Exclusive: Online Fraud Detection Startup IDfy Bags $2 Mn From Existing Investors

Mumbai-based online fraud detection platform IDfy is raising INR 16 Cr (nearly $2.1 Mn) in debt from existing investors Millenna FVCI III, NB Ventures and Dream Incubator as a part of its Series A funding round.

According to the Ministry of Corporate Affairs filings accessed by Inc42, IDfy’s parent company Baldor Technologies Private Limited is proposing to allocate 2,50,270 Series A CCD of a face value of INR 640 for a total aggregate subscription amount of up to INR 16,01,70,800. The board has approved the issue on preferential basis through private placement in a meeting held through private placement.

Of the total capital raised, Millenna FVCI III has infused nearly INR 14.89 ($2.01 Mn) into the company. Dream Incubator has invested INR 74 Lakh ($100K) and NB Ventures has added INR 37.24 Lakh ($50K) in the company. Millenna FVCI III holds 34.15% stake in IDfy on a diluted basis, whereas ND Ventures and Dream Incubator have 5.43% and 5.55%, respectively.

The funding will be used for growth and expansion, research and development activities, IDfy’s financial report highlighted. The fresh infusion will also allow the Mumbai-based company to meet its working capital requirement.

Prior to this, the company had reportedly raised INR 19.50 Cr from New Enterprise Associates, NB Ventures, Neelesh Bhatnagar family office, Dream Incubator. In 2015, it raised INR 18 Cr from NEA, Blume Ventures, Faktory Ventures and Beenos. Blume Ventures has been an investor in the company since the seed round raised in 2012.

IDfy was founded in 2011 by Ashok Hariharan, Vineet Jawa and Hatim Baheranwala. The online fraud detection platform provides background verification services and helps users authenticate and validate individual profiles using predictive analytics through customer insights and end-to-end HR intelligence for recruitment. The company verifies candidate profiles, PAN number, work experience, educational qualifications, addresses and references and charges users accordingly.

The company competes with Signzy, Yoti, inVOID, HyperVerge, Helloverify, Syntizen, SignDesk, Veri5Digital, and Karza Technologies, among others in the Indian market.

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