Youverify, a Nigerian company specializing in identity verification and anti-money laundering (AML) solutions for banks and startups, has secured a pre-series A funding round of $2.5 million.
The pre-Series A investment from Elm includes a strategic partnership to help Youverify streamline AML compliance for businesses, bolster global risk intelligence, and expand its products into new markets.
Speaking on the investment, VP of Elm Investment, Fahad bin Issa Ibrahim Al-Shathry said,
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“We are excited to partner with Youverify, a company that shares our vision for leveraging technology to solve critical challenges faced by businesses today. This collaboration is a testament to our dedication to collaborating with exceptional founders through investing in a budding technology ecosystem not only in the Kingdom of Saudi Arabia but also globally to drive efficiency, security, and trust.”
Since 2022, Youverify has expanded its real-time business verification coverage to 145 jurisdictions across 48 countries. Additionally, the platform offers coverage for real-time individual verification, including credit history and national identity numbers, in 46 countries.
The company currently serves commercial customers in only 12 countries. Across these countries, the startup 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.
Youverify compliance solutions help customers reduce fraud losses by over 60%, positively impacting company financials. The company’s clients experience more than a 50% reduction in the number of false positives through customizable rules and intelligent algorithms.
The surge in financial services across Africa has drawn increased attention from regulators. Reports indicate that transactions totaling $116 billion will occur through digital payment channels this year, necessitating stringent measures to combat identity theft and fraud.
Accordingly, there’s a growing emphasis on transparency in financial regulations and the enhancement of strategies for AML and Know Your Customer (KYC) through the adoption of regulatory technologies (regtech). Africa expects to follow suit as the demand for regtech solutions rises globally.
In a bid to enhance anti-money laundering compliance, Youverify has stepped up its platform to regulate the payments space.
Notably, detecting suspicious activities or potential fraud goes beyond monitoring transactions, with Youverify’s AI-powered solution, it monitors all data of interest beyond transactions with options for customizations based on industry needs.
Youverify clients experience more than 50% reduction in the number of false positives through customisable rules and intelligent algorithms.
The company’s CEO Odegbami stresses that collaborating with regulators across various markets has honed Youverify’s proficiency in compliance and cultural sensitivity.