The news: The US-based digital ID fintech reached a $4.5 billion valuation, up from $1.3 billion in March. It will use the funding to expand across new markets and reach more clients.
What’s its appeal? Its solution has proved popular across industries, including telehealth, gaming, ecommerce marketplaces, and the public sector. But the digitization of financial services over the past year is where Socure truly struck gold:
Piggybacking on the fast-growing fintech sector provided a significant tailwind to Socure ahead of its raise: It has seen 221% year-over-year (YoY) customer growth and five consecutive quarters of YoY revenue growth.
Looking ahead: Socure CEO Johnny Ayers told TechCrunch the company is considering an IPO in the “not-too-distant future.”
Going public would give Socure even more capital to scale faster than competitors and develop more fraud detection solutions. This follows Onfido also preparing for an IPO over the last year. After a year of record growth, digital ID fintechs are banking that the digitization of financial services will accelerate, expanding their addressable market.