Sept 3 (Reuters) - ID.me said on Wednesday it had raised $340 million across its latest funding round, combined with a credit facility, led by investment firm Ribbit Capital, valuing the digital identity wallet at over $2 billion.
The Series E round included participation from existing investors Ares Capital and Moonshots Capital, along with new investor Positive Sum. The funding would be targeted towards preventing AI-driven fraud.
WHY IT'S IMPORTANT
Despite macroeconomic uncertainties, private venture capital funding rose in 2025 as startups delayed their public offerings amid an abundant capital pool and higher valuations, with strong investor interest in artificial intelligence-driven companies.
CONTEXT
As cybercrime exploiting online platform vulnerabilities rises with advances such as AI, digital identity verification has become crucial, making companies like ID.me increasingly relevant.
ID.me is a digital identity wallet that stores and manages personal information and credentials.
It works with several U.S. government agencies, such as Veterans Affairs and Internal Revenue Service among others, to provide identity verification, according to their website.
Seven states credited ID.me with preventing more than $270 billion in unemployment fraud during the pandemic.
The financing will also help the company expand access to secure and reusable digital identity, it said.
KEY QUOTES
"Fraud is evolving at the speed of AI—and so are we," said Blake Hall, Founder and CEO of ID.me.
"As AI reshapes the economy and new fraud risks emerge, we believe ID.me's digital identity wallet will become even more essential in enabling secure connections between large organizations and their users, while also minimizing friction and improving the end-user experience," said John Clark, Ares Management.
BY THE NUMBERS
- The company added 20.4 million new wallets in 2024
- ID.me serves over 152 million users, which represent nearly 60% of U.S. adults
(Reporting by Pritam Biswas in Bengaluru; Editing by Vijay Kishore)
((Pritam.Biswas@thomsonreuters.com;))