ID.me has secured US$65 million in a series E funding round led by Ribbit Capital, with its valuation now exceeding US$2 billion.

The US-based company provides digital identity verification services.

ID.me also arranged a US$275 million credit facility, said founder and CEO Blake Hall.

The new funding comes as digital identity verification continues to gain attention amid rising security concerns.

.source-ref{font-size:0.85em;color:#666;display:block;margin-top:1em;}a.ask-tia-citation-link:hover{color:#11628d !important;background:#e9f6f5 !important;border-color:#11628d !important;text-decoration:none !important;}@media only screen and (min-width:768px){a.ask-tia-citation-link{font-size:11px !important;}}

🔗 Source: Axios

🧠 Food for thought

1️⃣ Government partnerships create sustainable competitive moats in identity verification

ID.me’s massive user base of 152 million individuals, representing 62% of all U.S. adults, combined with contracts across 20 federal agencies and 45 state agencies, demonstrates how government partnerships can create significant barriers to entry1.

This scale dwarfs competitors like AU10TIX, which generated $13.3 million in revenue with a 190-person team, and Evident, which achieved $3.7 million in revenue with 68 employees23.

The company’s early partnership with the Department of Veterans Affairs in 2019, which introduced Virtual In-Person Identity Proofing for veterans lacking stable addresses or credit histories, exemplifies how solving specific government challenges can lead to broader adoption4.

Government contracts provide predictable revenue streams and create switching costs that make it difficult for competitors to displace established providers, particularly when agencies have already integrated these systems into their operations.

2️⃣ AI-driven fraud is accelerating demand for advanced verification solutions

The identity verification market is experiencing unprecedented growth, with projections showing 86 billion ID verifications in 2025, up from 75 billion in 2024, driven partly by the rise of AI-enabled fraud5.

Identity-related issues now account for 42% of all suspicious activities encountered by financial institutions, highlighting the critical need for robust verification processes1.

ID.me’s CEO Blake Hall specifically cited the need to “combat AI-driven fraud” as a key use for the new $340 million funding, recognizing that fraudsters can now create fake IDs “quickly and cheaply” using AI tools15.

This trend is reshaping the entire industry, with the global identity verification market projected to grow from $14.86 billion in 2025 to $43.38 billion by 2034 at a 12.64% compound annual growth rate6.

……