Fraud Detection Startup IDfy Unveils Suite To Help Enterprises Comply With DPDP Act

SUMMARY

IDfy has launched Privy, a suite of privacy and compliance solutions designed for DPDP Act compliance.

Privy offers modules for instant compliance checks, personal data discovery, and consent governance.

The company claims to conduct over 2 Mn verifications per day and has served over 1,500 clients since inception.

IDfy, an online identity verification platform that provides background verification services, has rolled out a privacy and compliance suite to help enterprises achieve full compliance with Digital Personal Data Protection Act.

The Mumbai-based startup’s suite, Privy, will offer modules for instant compliance checks, personal data discovery solutions and consent governance tools.

IDfy claims that Privy addresses India-specific requirements that current GDPR and CCPA compliance tools do not adequately cover. These include consent nomination, verifiable parental consent, notices in 22 languages, and intersections with existing sectoral regulations.

“The landmark DPDP Act has given the power back to the citizens of the country. The fiduciaries have to now be careful about how they get customer consent and use customer’s data,” said Ashok Hariharan, CEO and cofounder of IDfy.

Founded in 2011 by Hariharan and Vineet Jawa, IDfy provides background verification services and fraud detection solutions. The company claims to have served over 1,500 clients since its inception, spanning sectors such as BFSI, FMCG, ecommerce, and gaming.

IDfy reports conducting over 2 Mn verifications per day and counts companies like HDFC Bank, Axis Bank, Zomato, PhonePe, and Paytm among its clients. The startup operates across India, Southeast Asia, and the Middle East.

Earlier this year, IDfy secured $27 Mn in a Series E funding round led by Elev8, with participation from KB Investment and Tenacity Ventures. The company has raised nearly $45 Mn in total funding to date.

The launch of Privy comes as companies prepare for the implementation of the DPDP Act, which was passed in 2023. Non-compliance with the act can result in fines of up to INR 250 crore.

IDfy faces competition in the fraud detection and background verification space from other Indian startups. These include AuthBridge, SpringVerify, Quinfy, Verifacts, and FactSuite, all of which offer various background verification services tailored to the Indian market.

The background verification sector in India has seen increased activity recently. As of 2023, the background verification market in India is valued at approximately $ 360 Mn. The market is anticipated to grow at a compound annual growth rate (CAGR) of around 16.42% from 2023 to 2030, reaching an estimated value of $940 Mn by 2030.

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