Youverify, a Nigerian enterprise specializing in identity verification and anti-money laundering (AML) services for the banking and startup sectors, has successfully raised $2.5 million from Elm. Elm is a Saudi Arabian company known for its digital solutions tailored to both public and private entities.

This pre-Series A funding from Elm includes a strategic alliance aimed at enhancing AML compliance for companies, improving global risk intelligence, and facilitating Youverify's entry into new markets.

Youverify has significantly expanded its service offerings since 2022, now providing real-time verification for businesses in 145 jurisdictions across 48 countries, and for individuals, including credit history and national ID numbers, in 46 countries. Founder and CEO Gbenga Odegbami, who initiated the startup in 2018, disclosed in a discussion with TechCrunch that the company has surpassed its original goal from its seed extension in 2022, aiming to extend its reach to 30 African nations.

Gbenga Odegbami, CEO of Youverify

However, the firm currently operates commercially in just 12 countries. Within these regions, Youverify handles 4 million monthly applications for more than 3,500 businesses, a notable increase from the 400 businesses and 5 million applications processed annually in 2022. The platform has also increased its ID verification capabilities from 400 million individuals to 5 billion, in addition to 600 million businesses across sectors like gaming, healthcare, travel, and telecommunications.

Odegbami highlighted that Youverify enables entities and individuals to authenticate their identity, registration, and ownership via governmental data. This approach goes beyond traditional OCR-based KYC methods, which rely on image recognition for ID validation. The company has also introduced products for anti-money laundering and risk classification to cater to various industry needs.

“Youverify employs advanced mathematical models and AI algorithms for risk assessment and analysis, generating regulatory reports for multiple countries,”

Odegbami added. Competitors in this domain include Smile Identity, Dojah, and Identitypass.

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With Africa's financial sector experiencing rapid growth, regulatory scrutiny is intensifying to address identity theft and fraud through digital payments, expected to reach $116 billion this year. The emphasis on financial regulation transparency and improved AML and KYC strategies is part of a broader trend towards regulatory technology (regtech) adoption, a demand that is growing worldwide.

Odegbami emphasized the importance of collaboration with regulators to tailor solutions to diverse market needs, highlighting Youverify's experience in compliance and cultural sensitivity. This capability is crucial in a global GRC market valued at over $57 billion annually.

Fahad bin Issa Ibrahim Al-Shathry, VP of Elm Investment, expressed enthusiasm about partnering with Youverify, aligning with Elm's mission to support innovative technology solutions that address critical business challenges. "This partnership demonstrates our commitment to investing in the technology ecosystem, fostering efficiency, security, and trust on a global scale," he remarked.