rewrite this title ID.me Raises $340 Million at a $2 Billion Valuation – Finovate

ID.me raised $340 million in a Series E investment plus a credit facility, which boosts its valuation to over $2 billion and brings its total funding to $1.1 billion.

The funding will accelerate secure, reusable digital identity solutions and combat AI-driven fraud, which cost the US up to $521 billion annually.

ID.me now counts 152 million users, totaling 60% of US adults, with adoption across 20 federal agencies, 45 states, and 600+ brands.

Digital identity network ID.me revealed this week that it has raised $340 million in a Series E financing round plus a credit facility. The round values ID.me at more than $2 billion. 

Ribbit Capital led the investment, while existing investors Ares Credit Funds and Moonshots Capital, as well as new investors, including Positive Sum, also participated. ID.me will use the funding to accelerate its mission to expand access to secure, reusable digital identity and to stop AI-driven fraud.

The funds, which bring ID.me’s total raised to $1.1 billion, come at a time of rising fraud across the globe. According to the Government Accountability Office (GAO), the US government lost up to $521 billion annually to fraud between 2018 and 2022. The increase in fraud is fueled by stolen identities and deepfakes, both of which are increasing vulnerabilities faster than ever.

“Fraud is evolving at the speed of AI—and so are we,” said ID.me Founder and CEO Blake Hall. “Secure identity is foundational to AI ecosystems that will depend on memory, context, and authentication, and ID.me is leading the charge. This funding strengthens our ability to expand secure digital access, protect privacy, and innovate faster to stay ahead of criminal networks.”

ID.me was founded in 2010 to serve as a digital identity wallet that helps users prove and share their identities online without disclosing additional personal information. The company maintains a digital identity network that includes 20 federal agencies, 45 state agencies, and 600+ retail brands, all of which use ID.me to verify customers’ identities and affiliations. ID.me’s ID wallet helps users prove they belong to certain affiliated groups, such as teachers, students, first responders, or military veterans.

Last year, ID.me added 20.4 million new wallets, which breaks down to over 55,000 each day. That same year, it also powered more than 409 million successful logins, representing a 44% increase year-over-year. In total, ID.me counts 152 million users, representing nearly 60% of adults in the US.

“We believe the AI revolution will reshape the global economy, and identity will be its foundation,” said Ribbit Capital General Partner Justin Saslaw. “As AI agents become ubiquitous, trusted identity tokens will enable secure, seamless interactions between people, organizations, and machines. ID.me has built one of the most advanced and widely adopted digital identity wallets in the world, giving it a durable advantage in creating and scaling the identity tokens that will power this new era. We’re excited to partner with Blake and the ID.me team as they expand their leadership in the token-driven AI economy.”

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