Socure, a machine learning digital id verification company, has announced that it has raised $450 million in its latest funding round which takes its valuation to $4.5 billion.
The latest funding round was led by T Rowe Price and Accel with many other investors like Bain Capital Ventures, Tiger Global, and others being involved as well. It is also reported that the current funding round was oversubscribed which shows the huge amount of investor interest in the company. With the digital payments industry coming along nicely and with all financial services shifting to digital, it is natural that they would be seeking partners who can help them do digital id verification. This is a very challenging industry due to the different types of id verification and rules in different regions. These rules are also being changed by the respective authorities every few months to ensure compliance and this presents further challenges as we move to a digital world.
Johnny Ayers, CEO, Socure, said: “When you’re a market leader, you move from attacking and replacing the incumbents repeatedly as you earn your seat at the table to truly being a strategic partner to many of the best companies in the world. With this additional capital, we will substantially increase our level of commercial velocity and intensity in solving complex customer and societal problems, while maintaining our Day 0 founder’s mentality and continuing to attract the market’s best product, data science, and engineering minds to join our already incredibly talented team.”
The demand for Socure’s services is expected to increase manifold in the coming years. This explains the $100 million investment made in its Series C of funding in March and the tripling of its valuation since its Series D. This was on the back of a 500% year over year growth in bookings and nearly $1 billion of demand from investors. The platform now has over 750 clients which include 4 of the 5 largest banks in the world and seven of the 10 largest credit card issuers which further shows the huge demand for its services from the different financial service providers. The company boasts of an auto-approval rate of over 97% and is also able to detect over 90% of frauds even from high-risk clients. This has helped to drive several clients towards the platform as they seek a reliable partner to onboard new users in a quick, safe and reliable manner.