IndiaMART InterMESH would acquire the shares from existing investors of IDfy
Founded in 2011, IDfy offers products and solutions for KYC, background verification, risk mitigation, digital onboarding and digital privacy
Earlier this year, the enterprise tech startup raised $27 Mn in a funding round led by Elev8
B2B marketplace IndiaMART
InterMESH has acquired a 10% stake in fraud detection startup Baldor Technologies for INR 89.7 Cr (about $10.7 Mn) via a secondary transaction.
Baldor Technologies offers products and solutions for know-your-customer (KYC), background verifications, risk mitigation, digital onboarding and digital privacy under the brand name IDfy.
In an exchange filing, IndiaMART said the investment aligns with its long-term objective of providing various software-as-a-service (SaaS) solutions for businesses.
IndiaMART will acquire 100 equity shares, 3.55 Lakh compulsorily convertible preference shares, and 2.32 Lakh compulsorily convertible debentures from the existing investors of IDfy.
The acquisition is expected to be completed in 30 days.
Founded in 2011 by Ashok Hariharan and Vineet Jawa, IDfy helps users authenticate and validate individual profiles using predictive analytics via services such as background verification, customer insights and end-to-end HR intelligence for recruitment.
It provides solutions for KYC, background verifications, risk mitigation, digital onboarding, and digital privacy. It claims to have served over 1,500 clients since its inception, spanning diverse sectors such as BFSI, FMCG, ecommerce, and gaming.
Commenting on the investment, IndiaMART founder and managing director Dinesh Agarwal said, “IDfy’s expertise in background verification and authentication aligns seamlessly with IndiaMART’s mission to empower businesses digitally.”
IDfy reported a revenue of INR 117 Cr in the financial year ended March 31, 2023.
Earlier this year, the enterprise tech startup raised $27 Mn in a funding round led by Elev8. Overall, the Mumbai-based startup has raised a total funding of nearly $45 Mn till date. It counts the likes of TransUnion, KB Investment, Blume Ventures and MegaDelta Capital among its investors.
On the other hand, IndiaMART last month reported a 78% surge in its consolidated net profit in Q4 FY24 to INR 99.6 Cr from INR 55.8 Cr in the year-ago quarter. Operating revenue grew 17% year-on-year to INR 314.7 Cr during the quarter under review.
Following the results, Nuvama Institutional Equities reduced the 12-month price target (PT) for IndiaMART InterMESH by 5% to INR 2,650 from INR 2,800 earlier.
