Youverify, a Nigerian provider of identity verification and anti-money laundering (AML) solutions for banks and startups, has secured a significant investment of $2.5 million from Elm, a Saudi Arabian company that specializes in offering ready-made and customized digital solutions to public and private institutions.
Strategic Partnership for AML Compliance
The pre-Series A investment from Elm includes a strategic partnership aimed at helping Youverify streamline AML compliance for businesses, bolster global risk intelligence, and expand its products into new markets. This collaboration is expected to further enhance the company’s capabilities in identity verification and AML solutions.
Expansion of Real-Time Business Verification Coverage
Since its launch in 2018, Youverify has made significant strides in expanding its real-time business verification coverage to 145 jurisdictions across 48 countries. The platform also offers real-time individual verification, including credit history and national identity numbers, in 46 countries.
Exceeding Initial Objectives
Founder and CEO Gbenga Odegbami mentioned that Youverify has exceeded its initial objective of expanding coverage across 30 African countries since 2022. Currently, the company serves commercial customers in only 12 countries, but it processes a significant number of applications for over 3,500 businesses with 800 active clients.
Key Milestones
- 4 million monthly applications: Youverify processes an impressive 4 million monthly applications across its client base.
- 3,500 businesses: The company has established partnerships with over 3,500 businesses across various industries.
- 800 active clients: Youverify boasts 800 active clients, indicating a strong customer base.
- 5 billion people: The platform’s capacity to verify IDs has expanded from 400 million to 5 billion people worldwide.
Differentiation and Risk Classification
Odegbami emphasized that Youverify’s approach to identity verification differs significantly from generic OCR-based KYC solutions. The company utilizes established mathematical models and AI algorithms to assess and analyze risks, generating regulatory reports for submission to regulators across multiple countries.
Other key features of the platform include:
- Anti-money laundering (AML) and risk classification: Youverify offers a comprehensive AML solution that determines the financial risk exposure posed by clients.
- Government data integration: Individuals and businesses can verify their identity, registration status, and ownership using government-provided data through Youverify.
Growing Demand for Regtech Solutions
The increasing demand for regtech solutions globally is driven by the surge in financial services across Africa. Reports indicate that transactions totaling $116 billion will occur through digital payment channels this year, necessitating stringent measures to combat identity theft and fraud.
Expertise in Compliance and Cultural Sensitivity
Youverify’s experience collaborating with regulators across various markets has honed its proficiency in compliance and cultural sensitivity. This expertise enables the company to customize its solutions to suit diverse enterprise requirements.
Global Importance of GRC Market
The governance, risk management, and compliance (GRC) market is expected to continue growing globally, surpassing $57 billion annually. Youverify’s investment and strategic partnership are timely and will contribute significantly to this growth.
Related Developments
- Fintech industry: The fintech industry has seen significant growth in recent years, driven by the increasing demand for digital financial services.
- Regulatory requirements: Regulatory requirements for identity verification and AML compliance continue to evolve, driving innovation in regtech solutions.
With this investment and strategic partnership, Youverify is well-positioned to expand its offerings and improve the efficiency of identity verification processes. The company’s commitment to innovation and customer satisfaction will likely drive further growth and success in the regtech market.
