OCR Labs Raises $15M Series A to Expand ID Verification Globally

The Expanding Landscape of Digital ID Verification

The rise of the gig economy created a significant demand for robust ID verification processes. This need spurred the development of companies like OnFido, and the sector continues to evolve rapidly.

OCR Labs Secures Series A Funding

OCR Labs, an Australian-based company, has recently announced a €12.5 million (approximately $15 million) Series A funding round. The investment was spearheaded by Oyak Group, a Turkish investment firm, and will be used to broaden the company’s reach into the U.K., Turkey, and the wider European market.

Halkin Ventures had previously invested during the company’s seed funding stage. OCR Labs focuses on providing solutions for digital ID verification, streamlining customer onboarding, preventing identity fraud, and ensuring regulatory compliance.

Core Technology and Capabilities

Founded in 2018 by Daniel Aiello and Matthew Adams, OCR Labs utilizes a comprehensive technology stack. It integrates “five proprietary technologies into a single solution,” encompassing optical character recognition (OCR) for identity documents, document fraud assessment, liveness detection, video fraud assessment, and face matching.

These capabilities are designed to support adherence to Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations.

Industry Demand and the Shift to Automation

Daniel Aiello, co-founder and CPO of OCR Labs, highlighted the increasing need for digital verification. He stated that demand has surged, particularly from sectors adapting to the challenges presented by the pandemic and the limitations of in-person operations.

“Individuals desire a streamlined process for proving their identity, whether applying for employment or opening a bank account,” Aiello explained. “Simultaneously, robust protection against identity theft and fraud is paramount.”

He further noted the drawbacks of hybrid verification models, emphasizing the benefits of fully automated technology in enhancing both security and privacy.

Key Partnerships and Leadership

OCR Labs currently serves clients such as REED, a prominent recruitment agency in the U.K. To support its international expansion, the company has appointed Russ Cohn, a former leader within Google UK, as its General Manager of International Operations, based in London.

The Advantage of Full Automation

Cohn emphasized the fully automated nature of OCR Labs’ technology as a key differentiator. “The system operates without human intervention, which is particularly crucial in the current environment,” he stated.

He pointed out that the disruptions caused by COVID-19 have underscored the limitations of hybrid solutions, and that automation significantly improves both the speed and efficiency of service delivery.

Cohn also noted that many competitors rely on outsourcing and multiple vendors to assemble their solutions, whereas OCR Labs offers a unified, integrated platform.