Identity verification startup, Youverify raises $2.5m pre-series A

Youverify, a Lagos and San Francisco–based identity verification company helping African banks and startups automate Know Your Customer (KYC) and other compliance procedures has announced that it has secured a $2.5 million investment pre-Series A investment.

According to an announcement by the company, the investment from Elm also includes a strategic partnership that will see the investor help Youverify streamline its Anti Money Laundering (AML) compliance checks for businesses, bolster global risk intelligence as well as expand its products into new markets.

This brings the total funds raised by the identity verification startup to $5 million. Recall that Youverify secured a $1 million seed round extension in 2022 after it had raised a $1.5 million round in 2020 bringing its total seed funding raise to a total of $2.5 million.

Similar: Youverify raises $2.5m total seed fund, to expand across Africa

According to founder and CEO, Gbenga Odegbami Youverify has established itself as a key player in fintech and an enabler in the financial industry with an impressive footprint in aggregating data for electronic identity verification (eIDv) in 45 countries and business verification in over 140 jurisdictions securely and reliably.

According to him, the investment from Elm will enable Youverify to scale its products to additional markets, accelerating the production of its next-generation AML 2.0 products.

“Partnering with Elm is a game-changer for Youverify and our customers. Elm’s strong track record in delivering innovative digital solutions aligns perfectly with our mission to provide the financial industry’s most reliable and efficient global AML solutions,” he said.

Gbenga, who founded Youverify in 2018 believes that these advancements are designed to help businesses reduce costs, increase operational efficiency, and navigate the complex landscape of global compliance standards with ease.

“The integration of Elm’s resources and expertise with our AI-driven platforms will enable us to accelerate the development of our AML 2.0 products. These innovative solutions are not just about meeting regulatory requirements; they’re about redefining the standard for efficiency and reliability in the financial sector. Staying ahead of fraud is not just a priority for us”, Famous Ehichioya, CTO and co-founder shares the optimism.

The founder also appreciated the support from the Business Development Bank of Canada, whose resources and guidance helped in our growth journey. “Without their backing, our path to success would have been significantly more challenging”, he noted.

John Lintzeris, the Regional Director, Technology Industry at BDC, commented, “At BDC, we are dedicated to the success of Canadian entrepreneurs. Youverify is a shining example of the innovative companies we are proud to support with financing and tailored advice. It is through partnerships like these that we are making a true difference in Canadian entrepreneurs’ growth plans, and by extension, building a stronger economy.”

With this investment, Elm strives to maintain its position as a dedicated investor in fostering technological innovation and supporting Youverify’s international expansion strategy. This investment also serves as a key step in strengthening Elm’s global investor position.

“This investment represents a vital step forward in promoting integrity and transparency within Africa’s markets. We eagerly look forward to forging a long-standing partnership that will not only ensure prosperity and economic expansion across the African continent,” said Majid bin Saad Al Arifi, the official spokesman and CEO’s VP of Marketing at Elm.

Youverify’s new AML drive

The collaboration between Youverify and Elm represents a significant step forward in the fight against financial crime and the promotion of secure, efficient business practices worldwide. With this partnership, Youverify can scale its products to additional markets, accelerating the production of its next-generation AML 2.0 products, and enhancing its ability to serve businesses globally.

In an interview with Techcrunch, Gbenga mentioned that Youverify has launched its anti-money laundering and risk classification product to address specific industry needs. He also explained that Youverify’s approach entails utilizing established mathematical models and AI algorithms to assess and analyze risks.

“Our risk classification determines the AML and financial risk exposure that clients pose to our customers. We utilize a variety of reliable data sources, including government sanctions and watchlists, global news outlets’ sentiment data, country-risk models and commercially accessible data, to make informed decisions on AML-related risks”, he shared.

Subsequently, the platform generates regulatory reports for submission to regulators across multiple countries. Other providers in the same space include Smile Identity, Dojah, and Identitypass.

Youverify’s growth since seed raise

Following its seed raise, Youverify announced its intention to expand its reach to 30 nations over the next 18 months, with a focus on the francophone, southern, and eastern regions of Africa, where Odegbami claims the company will actively recruit. 

Two years later, the company currently serves commercial customers in only 12 countries. Across these countries, Youverify processes 4 million monthly applications for over 3,500 businesses with 800 active clients.

This marks a significant increase from the 400 businesses and 5 million application processes per year recorded in 2022.

Additionally, the platform’s capacity to verify IDs has expanded from 400 million to 5 billion people as well as 600 million businesses across various industries such as gaming, travel, healthcare, and telecommunications.