Socure Raises $156M at $5.2B Valuation, Acquires AI Fraud Investigation Firm Fravity
Identity verification company Socure announced it has raised $156 million in a funding round valuing the company at $5.2 billion. The company is also acquiring AI startup Fravity to automate fraud investigations.
Socure, a provider of identity verification and fraud prevention solutions, announced Thursday it has secured $156 million in a growth investment round that values the company at $5.2 billion. The company also revealed its acquisition of Fravity, an AI startup focused on automating fraud investigations.
The investment was led by Summit Partners and included participation from Goldman Sachs Alternatives, Wells Fargo, and Docusign. Socure has now raised over $742 million in total disclosed funding since its inception in 2012. This latest valuation represents an increase from its previous valuation of $4.5 billion in 2021.
Socure attributes its growth to a surge in increasingly sophisticated fraud attempts, stating it ended the second quarter with $364 million in annual recurring revenue, a 63% increase year-over-year. The company uses AI and machine learning to help financial institutions and government agencies verify identities. Its customer base includes 19 of the 20 largest U.S. banks and numerous fintech companies.
The acquisition of Fravity is aimed at automating labor-intensive aspects of financial crime investigation. Fravity's AI platform will be integrated into Socure's RiskOS platform. The company claims Fravity's technology has reduced cost per case by 80% and increased case resolution speed fivefold in previous deployments.
Socure CEO Johnny Ayers noted that generative AI has led to an 8,000% increase in AI-driven fraud attempts on its network. He stated that AI presents both challenges and opportunities, with identity verification becoming increasingly critical. Socure has also expanded its reach beyond financial services, securing a federal contract for Login.gov.