ID.me's valuation increases to USD 1.8 million after tender offer

Since 2022, ID.me slightly raised its valuation, with the company’s worth being, at that time, nearly USD 1.73 billion. Led by Ribbit Capital, which became an investor in ID.me recently, the tender offer saw the participation of existing investors, including Viking Global Investors and CapitalG. Through this financial move, certain employees and early backers of ID.me were able to sell their shares.

At the time of writing, no details of the tender offer were disclosed by representatives of ID.me or Ribbit Capital, with them not responding to a request to comment on the matter. Initially, Bloomberg reported on the tender offer in October 2024, mentioning that people familiar with the matter said that the company allowed employees and early investors to make a tender offer of USD 67 million for shares until 1 November 2024. At that time, sources cited by Bloomberg said that ID.me was in preparation for an initial public offering in 2025 if market conditions prove favourable.

ID.me’s offering and capabilities

As a digital identity wallet, ID.me focuses on optimising how individuals prove their identity online. The company allows consumers to verify their identity with ID.me once and then log in across websites without being required to create a new login and authenticate themselves again. According to ID.me’s data, over 130 million users leverage its solutions at 17 federal agencies, 42 state government agencies, and 58 healthcare organisations. Also, the company’s technology falls in line with federal standards for consumer authentication set by the Commerce Department and is authorised as a NIST 800-63-3 IAL2/AAL2 credential service provider by the Kantara Initiative.

The completion of the tender offer comes a few months after ID.me announced that over 60 million US residents enrolled with its solutions to verify their identity online. These users were able to leverage ID.me’s digital wallet to safely log in and prove their identity at any government, commercial, or non-profit organisation that utilises ID.me.