Indonesian ID and data verification startup Verihubs receives $ 2.8 million led by Insignia Venture Partners – TechCrunch
For many financial institutions in Southeast Asia, new customer reviews take a week or two to review, said the founders of Verihubs. The startup cuts that time to just five seconds by using AI-based identity authentication technology and APIs that allow companies to continue verifying returning customers via SMS, WhatsApp, or Flash calls.
Verihubs announced that it has raised $ 2.8 million in seed funding to become “the one stop shop for verification in Southeast Asia.” The round is led by Insignia Venture Partners, in which CCV (Central Capital Ventura, the investment arm of Bank Central Asia, the largest private bank in Indonesia) and Armand Ventures participate. The round also includes angel investors from well-known Southeast Asian startups such as shipper co-founder Budi Handoko; Payfazz co-founders Jefriyanto and Ricky Winata; Gotrade co-founder Rohit Mulani; Bukuwarung founder Chinmay Chauhan; and Modalku ex-chief product officer Pramodh Rai.
The startup recently ended participation in the Y Combinator Summer Batch 2021 and says it’s the first YC-supported AI startup from Indonesia.
Jakarta-based Verihubs was founded in 2019 by Rick Firnando, who has more than 9 years of experience in the B2B industry, and Williem Williem, an AI researcher with a PhD in Computer Vision from Inha University, South Korea. The company currently has 46 customers, including major banks and fintechs, and the founders say it is well on its way to reaching 100 customers soon. While most of its current clients are in the financial sector, Verihubs’ technology can also be used for e-commerce, rental marketplaces, and the hospitality industry (one of its clients is a hotel that Verihubs uses for its check-in process).
Before Verihubs launched, many of his customers were still checking customers manually, Firnando said. Verihubs serves as an end-to-end verification solution “because integrating with multiple vendors is cumbersome for developers,” he added. Therefore, it enables customers to do KYC (Know Your Customer), offers phone number verification via WhatsApp or SMS, and also verifies customers’ financial details.
The first time end users log into an app using Verihubs, they will be prompted to take a selfie and then upload a photo of government-issued photo ID. Then Verihubs’ AI-based technology compares the two photos to see if they match, and also compares the ID to telecom credit ratings and Indonesian government databases, including criminal records.
Verihubs serves two types of end users – those with traditional bank accounts and those with no bank account. The startup’s new investment from Central Capital Ventura will help it develop its services for users with bank accounts as it will be able to work with BCA to access their clients’ data. For users without bank details, Verihubs is working closely with Payfazz, which allows customers to deposit money with local agents to use for online payments, and BukuWarung, an accounting app for SMEs, to access transaction data.
The startup’s product pipeline also includes building its own credit scores based on data such as transactions and account balances. Verihubs is currently focused on Indonesia and plans to eventually expand into other Southeast Asian markets.
“For the ID verification system, we found that there is already a product market fit in Indonesia, but we want to expand into new products,” said Firnando. “We’re consolidating financial data from multiple sources, not just for banks, but also for non-bank populations. And we are also looking into expanding into new markets such as the Philippines and Vietnam. “