IDfy raises Rs 476 crore led by Neo Secondaries Fund to fund global expansion, acquisitions

Funding

Identity verification platform IDfy has raised Rs 476 crore in a funding round led by Neo Asset Management’s Neo Secondaries Fund, as the firm looks to expand globally and strengthen its product stack amid rising regulatory focus on data privacy and fraud prevention.

The round included both primary and secondary components, providing partial liquidity to early investors and employees.

The company said it will use the fresh capital for strategic acquisitions, expansion into new international markets, and continued investment in its product suite spanning identity verification, risk management, and privacy governance solutions.

Founded in 2011 by Ashok Hariharan and V Balakrishnan, IDfy provides digital onboarding, fraud detection, and compliance infrastructure to enterprises through an integrated platform. The Mumbai-based firm serves more than 500 enterprise clients across over 10 sectors and conducts more than 500 million verification checks annually. It operates across seven countries.

The funding comes as India’s data protection ecosystem evolves following the rollout of the Digital Personal Data Protection Act and increased government spending on digital infrastructure, trends that are driving demand for compliance and trust technology.

“Digital economies run on trust. The moment it breaks, adoption stops. This funding will accelerate our mission to build digital infrastructure for trust globally,” said Ashok Hariharan, co-founder and CEO of IDfy.

Existing investors Blume Ventures, Analog Capital, Elev8, IndiaMART, and Kae Capital also participated in the round. Hemant Daga, co-founder and CEO of Neo Asset Management, said the firm views IDfy as well positioned to become a key trust layer for the growing base of digital users.

The secondary portion of the round enabled early backers and employees to partially exit their holdings, the company added.