May 13

Identitypass, an Identity Verification API for Africa, Raises $2.8 Million Seed Funding

By Tage Kene-Okafor

Mobile penetration in Africa is growing impressively at about 46% as more people come online for the very first time. In turn, this has increased the market opportunity for startups, especially fintechs and e-commerce, which try to provide various solutions to meet the financial needs of the populace.

But to do that, these businesses must carry out certain identity verifications and KYC to combat fraud, among other things. Many platforms power these KYC processes, and one of them, Identitypass, is today announcing that it has raised $2.8 million in seed funding, months after graduating from Y Combinator. The round also comes a few months after the startup raised $360,000 in pre-seed investment last November, bringing its total funding to $3.1 million.

Reports say African businesses lose $4 billion annually to cybercrime. The global figure for this occurrence stands at $1 trillion. Thus, the need for fintechs and digital businesses in Africa to perform stringent KYC and verification checks on their customers.

Photo courtesy of Blogtrepreneur.

Source: TechCrunch (link opens in a new window)

Finance, Technology
e-commerce, fintech, startups