The AI-powered identity verification industry just got a major shakeup! Germany’s IDnow has been acquired in an all-cash private equity deal worth $295 million by New York-headquartered Corsair Capital, marking one of Europe’s biggest exits in recent years. This follows the €60 million debt financing the company received from funds and accounts managed by BlackRock.
This is not the first collaboration between the two entities. In 2019, IDnow secured a $40 million growth equity investment from Corsair, which supported the company’s expansion of its product range and market presence throughout Europe.
Corsair Capital’s strategic investment
The acquisition of IDnow marks one of the most substantial German fintech exits in recent years. In 2024, According to Dealroom, 2024’s largest tech exits include Novartis’ €2.7 billion acquisition of biotech firm MorphoSys and Novo Nordisk’s €1 billion takeover of Cardior Pharmaceuticals.
Corsair’s investment aims to fuel IDnow’s continued growth and strengthen its leadership position within the European identity market, with aspirations to expand into other global regions.
A platform for identity proofing
IDnow was founded in 2014 by Armin Bauer, Dennis von Ferenczy, Felix Haas (founder of tech conference Bits&Pretzels and VC firm 10X founders), and Sebastian Baerhold. It specialises in AI-powered identity verification technologies, providing secure, remote auto & video identification, and electronic signature services. This helps companies acquire customers and manage transactions faster and easier while complying with Know Your Customer (KYC) and anti-money laundering (AML) regulations. It uses AI to check all security features on ID documents and can, therefore, reliably identify forged documents
IDnow addresses the cybersecurity and digital verification needs of global enterprises and leading international brands across financial services, telecommunications, travel & mobility, gaming and other industries.
Some of its customers include Bank of Scotland, BNP Paribas, Commerzbank, eventim, Sixt, solarisbank, Telefonica Deutschland, UBS, and Western Union. Fintechs such as Fidor, N26, smava, and wefox are also its customers, among others.
Participation in the ACHILLES Project
Recently, IDnow has taken a proactive role in advancing ethical AI practices by joining the ACHILLES project. This European Union-funded initiative, with a budget of €8 million from the Horizon Europe program, brings together 16 partners to tackle the “Achilles heel” of AI – efficiency and trust. The project’s goal is to develop AI systems that are not only effective and efficient but also ethically responsible, transparent, and compliant with European regulations.
IDnow’s primary contribution to the 4-year ACHILLES program involves providing expertise in identity verification to enhance the efficiency of datasets while ensuring compliance with privacy standards such as the General Data Protection Regulation (GDPR).
By participating in this initiative, IDnow aims to improve the quality and robustness of its algorithms, contributing to the development of more sustainable and regulatory-compliant AI solutions.
In 2021, IDNow acquired German identity verification provider Trust Management AG and French equivalent ARIADNEXT, allowing it to expand into the French market.
What about competition?
IDnow competes with several major players in the identity verification and digital onboarding space, including Onfido, Jumio, and Veriff.
- Onfido: A UK-based firm specialising in AI-powered biometric verification and has gained traction in fintech and banking. Entrust, a global leader in trusted payments, identities, and data security, acquired Onfido in 2024.
- Jumio: A US company offering AI-driven identity verification with strong compliance features, particularly in financial services and crypto. The company secured $150 million in private equity in 2021.
- Veriff: Valued at $1.5 billion, the Estonian unicorn focuses on AI-powered fraud prevention and has been expanding rapidly across global markets.
Implications in the ID verification Industry
IDnow’s recent developments reflect a broader trend in the identity verification industry, where companies are increasingly focusing on technological innovation and strategic partnerships to enhance service offerings and expand market reach. The substantial investment from Corsair Capital not only provides IDnow with the financial resources to accelerate its growth but also signifies a vote of confidence in the company’s business model and technological capabilities.
“Since our founding a decade ago, IDnow has become a market leader in identity verification in Germany and France. During this time, we have achieved significant success in delivering strong results and growing our customer base, and with today’s announcement we aim to solidify our commitment to positioning the Company for future success,” said IDnow CEO Andreas Bodczek. “Corsair’s increased investment underscores their confidence in our vision and speaks to the synergies we have achieved through our collaborative relationship. With this deeper partnership, we can continue to transform and ensure our platform continues to evolve.”
“We are thrilled to expand our partnership with IDnow,” said Raja Hadji-Touma and Edward Wertheim, Partners at Corsair. “Since our initial investment, we’ve witnessed IDnow build significant momentum and achieve impressive scale. We are excited by the opportunity to deepen our partnership with IDnow’s talented management team, and we look forward to supporting their next chapter of innovation and growth.”
“Building IDnow has been an incredible journey over the past 10 years together with Armin Berghaus, Dennis von Ferenczy and Sebastian Baerhold, and we believe today’s announcement enables us to strengthen our capabilities and capitalise on the vast market opportunity available to us,” said Felix Haas, Executive Chairman and Co-Founder of IDnow. “Corsair’s resources and expertise will help accelerate growth and unlock new opportunities for the Company and I’m confident this partnership will drive progress and expansion in ways that will benefit IDnow, its customers and the industry as a whole.”
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