IDfy has raised USD 52.5 million in a funding round led by Neo Asset Management's Neo Secondaries Fund to support global expansion and product development.
The financing included primary and secondary components, providing partial liquidity for early investors and employees while bringing fresh capital into the business.
The company will use the newly acquired capital for strategic acquisitions, international market expansion, and continued investment in its technology suite covering identity verification, risk management, and privacy governance solutions.
Platform serves enterprise verification requirements
IDfy develops technology-driven products that authenticate individuals and businesses. The platform enables enterprises to prevent fraud and onboard verified users with minimal friction.
The Mumbai-based company serves more than 1,500 clients across sectors, including banking and financial services, fast-moving consumer goods, ecommerce, gaming, sharing economy platforms, and large conglomerates. IDfy operates across India, Southeast Asia, and the Middle East, providing digital onboarding, fraud detection, and compliance infrastructure.
Existing investors Blume Ventures, Analog Capital, Elev8, IndiaMART, and Kae Capital participated in the round.
Identity verification market expansion
Digital identity verification platforms address regulatory requirements for customer due diligence, anti-money laundering compliance, and KYC processes. Financial institutions, ecommerce platforms, and sharing economy services use these systems to verify user identities during account opening and transaction monitoring.
India's Digital Personal Data Protection Act, enacted in 2023, establishes data protection obligations for organisations processing personal information. Identity verification providers must comply with consent requirements, data minimisation principles, and security safeguards under the framework.
The Reserve Bank of India mandates video-based customer identification processes for digital account opening in banking and non-banking financial companies. Identity verification platforms integrate with these regulatory requirements through liveness detection, document authentication, and audit trail capabilities.
Neo Asset Management operates private equity and venture capital funds focusing on secondary transactions and growth-stage investments. The firm provides liquidity solutions for startup employees and early investors through secondary share purchases.
IDfy's expansion plans target Southeast Asian and Middle Eastern markets, where digital transformation initiatives and regulatory developments drive demand for identity verification and fraud prevention infrastructure.
