Onfido, a pioneer in the field of identity verification using computer vision, machine learning, and other AI technologies, is being acquired. TechCrunch has confirmed that Entrust, a privately-held company specializing in certification and verification services related to payment cards, passwords, network access, website access, and more, is purchasing the London-based startup. Sources indicate that the acquisition price is well above $400 million.
The deal is currently awaiting regulatory approvals and is described as “early and exclusive” negotiations between the two companies. Once the process is complete, the plan is to integrate Onfido’s tools into Entrust’s broader technology stack. Todd Wilkinson, CEO and president of Entrust, emphasized that this move would position them as leaders across the identity lifecycle.
Entrust, with its roots dating back to the 1990s, and Datacard (which acquired Entrust and rebranded it) since 1969, recognizes the strategic value of incorporating AI-based tools. Wilkinson noted, “[With] tools like Onfido’s Atlas AI, it’s no surprise that AI is a significant draw for us.”
Entrust, a privately-held company, is profitable and has maintained profitability for several years. With an annual revenue of just under $1 billion, it serves approximately 10,000 customers, including governments, major banks worldwide, and large enterprises. Notably, Entrust has no shareholders; it is privately owned by a German family, which means it has not undergone a formal valuation process.
Onfido, on the other hand, was founded by Husayn Kassai while he was still a student at Oxford. Co-founders Eamon Jubbawy and Ruhul Amin later joined him.
The trajectory of Onfido’s journey aligns with significant trends in the tech industry. Founded in 2012, it capitalized on the AI boom of the 2010s, securing investments from notable backers such as TPG, Salesforce, Microsoft, and nearly 50 other firms and individuals. The COVID-19 pandemic further elevated its prominence, as digital transactions surged, emphasizing the need for robust digital-based identity verification tools. Although Onfido last disclosed a funding round of $100 million in 2020, additional funding rounds occurred more quietly, their exact value undisclosed.
However, the post-pandemic economic shift and the return to a “new normal” impacted Onfido, much like other tech companies. Husayn Kassai stepped away from the business a couple of years ago and is now involved with Quench.ai, another AI startup focused on edtech and backed by Sequoia and other investors. Informally, rumors circulated that Onfido had been exploring potential buyers for the past few years.
Entrust’s acquisition of Onfido comes at a pivotal moment in the tech industry.
The relentless surge in data breaches has elevated security concerns, emphasizing how identities are used and sometimes abused. Simultaneously, stringent data protection regulations have intensified the focus on identity management. Additionally, the rapid adoption of cloud-based digital services has expanded the attack surface, making it crucial for identity verification, certification, and security providers to keep pace.
While Entrust already offers an extensive range of services and has the expertise to operate in sensitive verticals like government and financial services, the AI acquisition represents a significant leap forward. It equips Entrust to address the complex challenges of today and anticipate those of tomorrow.
This trend also aligns with the broader consolidation of point solutions within larger platforms. Although the market may appear confusing due to numerous players, companies with stable financial foundations, like ours, have thrived amid creativity and competitiveness.
We’ve reached out to Onfido for comment and will update as soon as we receive their response. For now, we share a statement from a press release:
“We’re excited to be entering into early and exclusive discussions with Entrust to potentially expand access to the most advanced and secure digital identity verification solutions worldwide,” said Mike Tuchen, Onfido’s CEO. “Digital identities are enabling new levels of simplicity and access for people across the globe.”