Identity verification startup Bureau raises $30 million in Series B round led by Sorenson Capital

Identity verification startup Bureau raises $30 million in Series B round led by Sorenson Capital

Bureau, a Bengaluru-based risk intelligence platform focused on digital fraud prevention, has raised $30 million in Series B funding.

The round was led by Sorenson Capital, with participation from PayPal Ventures and existing backers, including Commerce Ventures, GMO Venture Partners, Village Global, Quona Capital, and XYZ Ventures, the company said on December 18.

The funds will be used to enhance Bureau’s product offerings, recruit talent, expand go-to-market team and broaden its global footprint.

“Our revenue grew 2.5 times each year till 2024 and the growth continues even now. This also reflects in terms of valuation, which shows investor confidence. Our customer base grew to 150 and mostly large enterprises,” Bureau founder and CEO Ranjan Reddy told Moneycontrol. “India is definitely the focus with new funding but we are also expanding globally. We have entered five new markets.”

The funding comes as cyber fraud incidents surge globally, with losses estimated at over $5 trillion annually—a 56 percent increase in the past decade. The announcement also comes at a time when several investors in India are betting big on the fraud detection and cybersecurity startups.

“The scale of fraud is increasing, more than Rs 11,000 crore worth of fraud is reported… In India, the fraud prevention market is pegged at $7.3 billion, driven by scams such as money mule operations, UPI fraud, and identity theft,” Reddy said. “Bureau’s growth aligns with increasing demand for sophisticated tools to combat these threats.”

Founded in 2020 by Reddy, Bureau's AI-powered platform delivers real-time, contextual fraud prevention across the entire customer lifecycle, going beyond traditional rule-based systems.

The company caters to industries such as banking, fintech, e-commerce, gaming and consumer internet platforms. Key features include money mule detection, account takeover prevention, fraud ring detection, and onboarding compliance.

The platform’s no-code identity decisioning capabilities allow organisations to streamline customer onboarding, monitor transactions and meet compliance requirements efficiently.

The fresh capital will also be used to enhance Bureau’s product offerings, recruit talent, expand its go-to-market team, and broaden its global footprint.

“As cyber fraud reaches unprecedented levels, this investment validates our approach to fraud prevention and accelerates our mission to protect businesses and consumers worldwide,” Reddy said.

Bureau has raised $50.5 million to date. It raised $16.5 million in its Series A funding round in 2022, with participation from Quona Capital, GMO Venture Partners, Village Global, and Commerce Ventures.

“Between last round and this round a lot of things has changed. We went from one bank that we used to work with to more than about 10 banks,” Reddy said.

Understanding everything from onboarding compliance to fraud within the banking as a vertical is something the company has done very well. A lot of gig economy companies, at least 80 percent of them, will be working with Bureau, he said.

“Bureau uses a unique combination of device, behaviour, financial and partner data to block scammers while maintaining a seamless experience for legitimate users. This ability to balance fraud prevention with customer retention sets them apart,” Rob Rueckert, Partner at Sorenson Capital, said.