ID.me Nets $340M for Digital Identity Push

Digital identity wallet ID.me raised $340 million across Series E financing, announced Wednesday (Sept. 3), and a credit facility, announced earlier.

The latest financing values that company at over $2 billion, it said in a Wednesday press release.

That valuation is up from the $1.8 billion at which ID.me was valued in November.

ID.me said in the Wednesday release that it will use the new capital to continue its work to expand access to digital identity and to combat the growing threat of artificial intelligence-driven fraud.

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

ID.me serves 152 million users—nearly 62% of all U.S. adults—as well as 20 federal agencies, 45 state agencies, 70 healthcare organizations, 500 employers and 600 consumer brands, according to the release.

During 2024, the company added 20.4 million new digital wallets and powered 409 million successful logins, per the release.

Justin Saslaw, general partner at Ribbit Capital, which led the Series E round, said in the release that identity will be the foundation of the AI revolution.

“As AI agents become ubiquitous, trusted identity tokens will enable secure, seamless interactions between people, organizations and machines,” Saslaw said. “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.”

ID.me was valued at $1.8 billion following a November tender offer, up from $1.73 billion two years earlier.

The PYMNTS Intelligence and Intellicheck collaboration “How FinTechs Are Fighting Identity Theft and Identity Fraud” found that fraudsters are leveraging AI-powered identity manipulation and other sophisticated tactics to commit financial crime.

Identity-related issues comprise 42% of all suspicious activity encountered by financial institutions, underscoring the central role of identity in fraud attempts and the need for robust identity verification processes, according to the report.