Onfido raises £38.25 million Series C investment led by SBI International

Onfido raises $50M led by SBI Investment and others to create the identity verification standard for businesses globally

Frank van Veenendaal, former Vice Chairman of Salesforce, joins board 

Onfido has raised $50M in funding, bringing the total investment in the company to over $100M. The round was led by SBI Investment and Salesforce Ventures, with support from M12(formerly Microsoft Ventures), FinVC and others, including existing investors. Frank van Veenendaal (view his interview on why he joined), former Chief Sales Officer and Vice Chairman of Salesforce joins Onfido’s board. The investment will accelerate Onfido’s goal of using AI to standardize the way businesses verify identities in a scalable and secure way. It will help Onfido consolidate its core market in the USA, accelerate Onfido’s expansion into high-growth regions including Europe and South-East Asia as well as advancing product development.  

With just a photo of an identity document and a selfie video, anyone can access a host of online services in a matter of seconds from some of the biggest names in financial services, transportation, online marketplaces & communities, gambling and other industries—all fueled by Onfido’s AI-powered identity verification. 

This recent round validates Onfido’s success in creating a multi award-winning AI-powered identity verification platform—one that’s generated a 342% year-over-year sales growth and attracted over 1,500 customers worldwide— including industry leaders such as Current , Drivy, DraftKings, Europcar, Indiegogo, Remitly, and Zipcar. These customers are choosing Onfido over others because of its ability to scale, speed in onboarding, preventing fraud, and biometric technology. 

Ability to Scale – Onfido automates checks on over 4,500 document types across 195 countries detecting anomalies automatically, while using human experts to verify outliers.  This means  customer pass rates don’t suffer as they grow or expand to new regions. If new documents are detected, Onfido’s AI quickly learns them and can continue to handle high volumes, without defaulting to expensive and timely manual operations.

Speed of onboarding – customers can be onboarded in as little as 15 seconds, minimizing drop-off rates while still complying with ‘Know Your Customer’ (KYC) and Anti-Money Laundering (AML) regulations. Cross-platform support, blur & glare detection and customer UX design services all contribute, helping ensure users don’t drop-off during the process. 

Fraud prevention – Onfido’s risk engine protects its customers’ bottom lines with fraud exposure rates as little as 0.0195%*. Proprietary anti-fraud technologies such as Onfido’s facial liveness testing, the ability for its AI to detect fakes that a human eye cannot, combined with its experienced document team,  help maintain the market’s most robust protection against spoofing attempts.

4.5 billion records were breached in the first half of 2018, and McKinsey has predicted the identity verification-as-a-service market to hit $20 Billion by 2022. So Onfido is very well placed to solidify its position as the global leader in identity verification,” said Tomoyuki Nii, Executive Officer, at SBI Investment. “We chose to invest in Onfido because they have proven their expertise at using artificial intelligence to effectively fight fraud, giving businesses a safe and secure way to scale their businesses online.”

“There has never been a more important time for companies to build trust with their customers by showing they are one step ahead of fraudsters,” said Frank van Veenendaal. “I believe Onfido has the unique opportunity to transform the digital identity market and deliver robust and scalable authentication-as-a-service, similar to how Salesforce transformed customer relationship management.”

“We’re seeing new data breaches occur every day, resulting in millions of people’s private data ending up on the dark web,” said Husayn Kassai, CEO and co-founder of Onfido. “With this new funding, we can protect more businesses, in more countries—and in more ways—from the effects of fraud. We’ll also be able to expand the reach of our technology, so that people without a credit history can finally access the online services they badly need.” 

Request a demo of Onfido’s Identity verification technology.

Other investors that took part in this round include: Acequia Capital, Tuesday Capital, Crane Venture Partners, Idinvest Partners, Augmentum Fintech plc, Wellington Partners, Plug & Play Venture Group, B&Y Venture Partners, CreditEase Ventures, TempoCap, and Talis Capital.


Starling Bank raises £75 million Series C to fund its expansion from Merian Chrysalis

London, 13 February 2019: Starling Bank, a leading digital banking platform, has raised £60 million in a Series C funding round led by Merian Global Investors, including the Merian Chrysalis Investment Company Limited (“Merian Chrysalis”).

Starling has also raised a further £15 million from its existing investor, bringing the total to £75 million.

The funding will support increased investment in Starling’s pioneering financial products in retail and SME banking as well as banking services in the UK. It will also enable the digital banking platform to accelerate its global expansion, starting in Europe.

The expansion will build on Starling’s rapid success to date in the UK and underscores its ambitions to change the face of banking: since launching its app in May 2017, Starling has built up a customer base of 460,000 personal current accounts and 30,000 SME accounts. The bank expects to hit one million customers by the end of 2019.

Starling’s Banking Services division, which makes the bank’s proprietary best-in-class banking and payments infrastructure (“Banking-as-a-Service”) available to third parties, has 20 institutional clients, including three new customers this week, while payment volume in its Payment Services is doubling month on month. The Starling Marketplace, Europe’s first fully integrated financial marketplace, provides customers with access to third-party financial services and now has 11 partners, with many more in the pipeline.

Starling has a strong track record as an innovator, bringing out new products and features virtually every month. Its latest product, a euro account, allows UK residents to hold, send and receive euros for free.

Merian Chrysalis is an LSE-listed investment company advised by leading asset management firm Merian Global Investors, which was formerly named Old Mutual Global Investors. Merian Global Investors has a total of £28.9 billion under management (as at 31 December 2018).

Merian Chrysalis, is co-managed by Richard Watts and Nick Williamson members of Merian Global Investors award-winning small and mid-cap desk, which manages approximately £6 billion in client investments (as at 31 January 2019). Merian Chrysalis was created specifically to invest in exciting, late-stage private companies.

Anne Boden, founder and chief executive of Starling Bank, said:
“Building our platform and launching in the UK to provide genuine choice to retail, SME and Banking-as-a-Service customers was just the first step. Our ambition is to use our technology to build a next-generation global, digital banking platform, starting with our launch across Europe this year.

“We look forward to the support of the Merian Chrysalis team as we deliver the Starling product to a global audience.”

Nick Williamson, Merian Chrysalis co-portfolio manager, said:
“Financial services is a market undergoing considerable change, driven by technology and users’ desire for better and more convenient offerings. The Starling team has developed a highly impressive and efficient platform, which we believe positions it well to continue to take share in core banking markets, as well as the ability to offer innovative new services in the future. We are delighted to be backing Anne and her team with this investment, and look forward to supporting them as they realise the full potential of the business.”

Notes to Editors

MGI’s total investment, across a number of funds, is approximately £50 million, subject to regulatory approval. Starling’s seed investor Harald McPike is participating in the round with a £10 million investment. This follows £15 million he recently invested in the bank and brings the total raised to £75 million.

J.P. Morgan acted as exclusive financial advisor to Starling Bank on this transaction with Norton Rose and Macfarlane’s acting as legal advisors to Starling Bank and Merian Global Investors, respectively.

About Starling Bank

Starling Bank is a digital bank based in the UK, offering personal, business, joint and euro current accounts. It also operates a Marketplace as well as Payment Services for banks, e-money institutions, government and corporates, and a Banking-as-a-Service platform. Headquartered in London, Starling is a fully licensed and regulated bank, founded by former Allied Irish Banks COO, Anne Boden, in January 2014.

About Merian Chrysalis Investment Company

The Merian Chrysalis Investment Company Limited is a Guernsey-domiciled investment company traded on the London Stock Exchange. It aims to generate long-term capital growth through investing in a portfolio consisting primarily of equity or equity related investments in unquoted companies. The Company’s investment adviser is Merian Global Investors. Its investment advisory team is led by co-fund managers Richard Watts and Nick Williamson.

Merian Global Investors was formed in June 2018 when its management team, together with funds operated by the global growth private equity firm, TA Associates, acquired the “single-strategy” investment capabilities of Old Mutual Global Investors.

Contacts

For Starling Bank:
Alexandra Frean alexandra.frean@starlingbank.com +44 7973 668363
Pagefield media@starlingbank.com +44 203 874 6639

For Merian Global Investors:
Amelie Shepherd, Amelie.Shepherd@merian.com +44 207 332 8345

J.P. Morgan makes strategic investment in technology innovator and workplace pensions provider, Smart Pension

J.P. Morgan has made a strategic investment in technology innovator and UK workplace pensions provider, Smart Pension, it was announced today.

The company has taken a minority equity stake in the firm as part of Smart’s new strategic placement funding round, bringing total funds raised to date to c.£50m.

The news comes as Smart, one the UK’s largest providers of workplace pensions, continues to build its stature as a leading player in the UK DC landscape and takes its savings platform technology into fresh global markets.

In October last year, Smart announced it had won an international competitive tender to deliver a pensions technology platform for New Ireland Assurance, one of Ireland’s leading life insurance, pensions and investment businesses.

The fast-growing UK-based fintech is now in early-stage conversations with new strategic partners globally.

Andrew Evans, Smart Pension co-founder and CEO, said: “We are delighted to have secured this investment from J.P. Morgan, as it signifies a positive step in our growth and international reach. From the outset our objective has been to put user engagement and experience at the heart of everything we do, utilising technology to build an unrivalled platform. Our journey has just started, the opportunities to disrupt and do things differently in this sector are staggering, and we will be leading the way.”

Anne Lester, Global Head of Retirement Solutions, J.P. Morgan Asset Management, will take a non-executive seat on the Smart board.  She said: “We are investing in pensions and savings solutions and technology capabilities to help investors achieve better financial outcomes, reinforcing our commitment to putting clients first in every aspect of our business. Smart Pension has demonstrated how financial technology can have a positive impact by making it easier both for people to save for retirement and for companies to offer pension plans to their employees.”

Will Wynne, Smart Pension co-founder and MD, said: “In October we won our first international competitive tender to build a savings technology platform in Ireland. This gives us an opportunity to demonstrate how our unique proprietary dynamic technology is plugging a huge gap in the workplace savings platform market, and performing on a global scale. We are now in early stage conversations with new strategic partners as the world’s financial institutions grapple with regulatory change and legacy technology.”

ENDS

For further information please contact:

Liz Slee

liz.slee@smartpension.co.uk

+44 (0) 7540 060112

About Smart Pension

Smart Pension is a global savings technology platform provider. It is also one of the UK’s largest providers of workplace pensions. Its award-winning master trust is MAF-accredited and overseen by independent professional trustees. It was co-founded in 2014 by Andrew Evans, CEO, and Will Wynne, MD, and launched in May 2015. Europe’s largest asset manager Legal & General Investment Management (LGIM) took a minority stake in the digital pension platform in 2016, part of a move by LGIM to invest in high-achieving, innovative technology that has a positive impact on the economy. In June 2017 it was named Fintech Innovation of the Year and overall winner in the Digital Leaders 100 awards, in June 2018 it was named as Master Trust of the Year at the European Pension Awards.

https://www.smartpension.co.uk