Verihubs Secures $2.8M Seed Funding - Indonesian ID Verification

Verihubs Secures $2.8 Million Seed Funding to Revolutionize Customer Verification in Southeast Asia

Founders of Verihubs report that many financial institutions across Southeast Asia typically require one to two weeks to complete new customer verification processes. Their startup aims to drastically reduce this timeframe, achieving verification in as little as five seconds.

AI-Powered Identity Authentication and API Integration

Verihubs utilizes artificial intelligence-driven identity authentication technology and provides APIs. These APIs allow businesses to efficiently verify returning customers via channels like SMS, WhatsApp, and flash calls.

Seed Funding Round Details

The company has announced a successful $2.8 million seed funding round, intended to establish Verihubs as the leading “one-stop solution for verification” within the Southeast Asian region.

Insignia Venture Partners spearheaded the investment. Additional participation came from CCV (Central Capital Ventura, the investment division of Bank Central Asia, Indonesia’s largest privately-held bank) and Armand Ventures.

Notable Angel Investors

The funding round also attracted investment from prominent angel investors connected to successful Southeast Asian startups. These include:

• Budi Handoko, co-founder of Shipper
• Jefriyanto and Ricky Winata, co-founders of Payfazz
• Rohit Mulani, co-founder of Gotrade
• Chinmay Chauhan, founder of BukuWarung
• Pramodh Rai, former chief product officer of Modalku

Y Combinator Participation and Indonesian Roots

Verihubs recently completed the Y Combinator summer 2021 program. The company distinguishes itself as the first AI startup originating from Indonesia to receive backing from Y Combinator.

Company Overview and Growth

Headquartered in Jakarta, Verihubs was established in 2019. The founders are Rick Firnando, possessing over nine years of experience in the B2B sector, and Williem Williem, an AI researcher with a PhD in computer vision from Inha University in South Korea.

Currently, Verihubs serves 46 customers, encompassing major banks and fintech companies. The founders anticipate reaching 100 customers in the near future.

Versatile Technology Applications

While the financial sector represents the majority of its current clientele, Verihubs’ technology is adaptable to various industries. These include e-commerce, rental marketplaces, and hospitality – exemplified by a hotel utilizing Verihubs for its check-in procedures.

Streamlining Verification Processes

Prior to implementing Verihubs, many clients relied on manual customer verification methods, as stated by Firnando. Verihubs functions as a comprehensive verification solution, simplifying integration for developers by eliminating the need to work with multiple vendors.

The platform facilitates KYC (know your customer) compliance, provides phone number verification through WhatsApp or SMS, and validates customers’ financial information.

How Verihubs Works: Identity Matching and Data Cross-Referencing

New users of applications integrating Verihubs are prompted to submit a selfie and a photograph of a government-issued ID. The AI technology then compares these images for a match. Furthermore, the ID information is cross-referenced with telecom credit scores and Indonesian government databases, including criminal records.

Serving Both Banked and Unbanked Populations

Verihubs caters to both individuals with traditional bank accounts and those who are “unbanked.” The recent investment from Central Capital Ventura will enable the development of enhanced services for users with bank accounts, leveraging partnerships with BCA for data access.

For unbanked users, Verihubs is collaborating with Payfazz, which facilitates cash deposits through local agents for online payments, and BukuWarung, a bookkeeping application for SMEs, to access transaction data.

Future Product Development: Credit Scoring

The startup’s future plans include the development of proprietary credit scoring models, based on data such as transaction history and account balances.

Geographic Focus and Expansion Plans

Verihubs is presently focused on the Indonesian market, with strategic plans for expansion into other Southeast Asian countries.

Strategic Vision for Growth

“We’ve identified a strong product-market fit for the ID verification system within Indonesia, but our ambitions extend to introducing new products,” Firnando explained. “We aim to consolidate financial data from diverse sources, encompassing both traditional banking and unbanked populations. Additionally, we are exploring expansion into markets like the Philippines and Vietnam.”