In a major milestone for the digital identity verification market, a Hyderabad-based startup, Equal has managed to secure 10 million dollars (around Rs 84 crores) in what is its first big round of institutional funding. As per the company’s announcement, the round was led by several well-known investors such as Prosus Ventures and Tomales Bay Capital, with other contributions from Keshav Reddy, a member of the famous GVK family and a co-founder of Equal. This successful funding has left the valuation of Equal at a healthy 80 million dollars which suggests that the company has much to offer in the capitalizing and expanding industry of the digital identity verification process.
Equal was established in 2022 by Keshava Reddy along with Rajeev Ranjan, who used to be the director of engineering at India’s largest food delivery platform Swiggy. Because Reddy is able to do business and Ranjan is able to advance technology, the startup combines these two skills in order to create a more straightforward and efficient identity verification platform. The platform is targeted at improving and streamlining know your customer (KYC) processes for several types of businesses, combating fraud, and facilitating the requirements of law. This is done via complex integrations with about 50 identity databases, thus facilitating end users with a seamless and smoother verification experience.
Strategic Investors in the Funding Round
The funding round attracted several notable strategic investors including both individuals and institutions. Institutional investors who backed up Equal include Blume Ventures, DST Global and Quona VC while strong industry leaders such as Zerodha co-founder Nikhil Kamath (via Gruhas VC), Binny Bansal co-founder of Flipkart, Karan Adani of the Adani Group, Cred’s Kunal Shah and JSW Cements’ Parth Jindal among others joined the cause. The presence of these two strategic investors certainly provides a strong reachable base for Equal by consolidating aspects from different realms of the economy.
Keshav Reddy’s ties with the GVK family across the sectors of energy and infrastructure have also tremendously assisted his cause towards clinching such partnerships. The support system surrounding the startup is predicted to boost its level of funding thanks to the stability it possesses and the strategic foresight it can offer which may help future partnerships and growth.
Making KYC Processes Easier and Better
In the digital economy, especially in more regulated spheres such as banking or finance, the KYC process is quite important. As online scammers and various cyber threats continue to evolve, a straightforward and effective identity verification solution becomes more important. Equal’s platform addresses this problem by providing an industry-independent KYC module.
With the help of nearly 50 identity data sources, Equal’s platform intends to combine several verification processes into one for companies that want to simplify their compliance operations. These integrations help the platform scale and implement complex verification at different levels, which is important for businesses to avoid losses from fraud and comply with regulatory standards. Also, Equal's strategy allows it to quickly respond to new requirements, which is beneficial for the evolving needs of companies.
Future Plans and Expansion Strategy
The latest funds acquired in this round will mainly be applicable in achieving equal’s operational growth focusing on developing its technological capabilities and establishing partnerships in different sectors. Equal intends to utilize some of these funds in developing a framework that will strengthen the data sharing ecosystem in India. This strategy is in line with the overall objective of the company which is to foster a digital India where data sharing is efficient and enhances the business exp., regulations, and compliance.
According to the statement provided by the company, three such stacks are being developed by Equal, one each to encompass the spheres of banking & financial services, employment verification, and consumer technology. Each stack has been defined by specific problems in these fields. For example, banking and financial services around the world are highly regulated industries, and Equal helps these institutions stay within these constraints while managing operational complexity. In employment verification, the platform can allow companies to perform timely comprehensive background checks for candidates which is increasingly needed in the times of the pandemic. On the other hand, the consumer technology stack aims at protecting user information while maximizing user experience with minimum friction.
OneMoney – Strategic Stake Acquisition
In August 2023, Equal purchased a notable interest in OneMoney, a financial aggregator platform. OneMoney is part of the account aggregator (AA) framework developed by Reserve Bank of India (RBI) seeking to facilitate exchange of such data in a safe and efficient manner controlled by the end user. OneMoney spaces Equal on the regulatory framework of the AA allowing it to practice being a first adapter of regulated data sharing models.
With the charge of the RBI yet to be received, Equal has ambitions of increasing its concentration in regulated spaces and is more so looking for further financial authorities licenses. Such growth will enable Equal to provide even more specialized and comprehensive service packages to clients from businesses with strictly regulated legal frameworks like banks and insurance agencies. Equal’s engagement in the AA framework will help her promote a healthier, more secure and efficient Indian financial structure which is consistent with the aims of the county to advance digital financial coverage and safety.
Understanding the Regulatory Environment of India Step By Step: The Road Ahead
In the past few years, India has also developed a regulatory framework around digital identity and data privacy, largely due to the threat posed by data protection and privacy infringement. It is worth mentioning that some of the big legislative changes in the country, such as the introduction of frameworks like the Personal Data Protection Bill and the account aggregator ecosystem, signify the movement towards more robust legislation around protecting data. Thanks to its modular technology stacks and its efforts to be compliant, Equal’s platform is strategically positioned to follow these changes as they develop.
The sectors that provide digital ID verification services within the country are in for positive growth, which is further buttressed by the government initiatives seeking to promote digitalization and an upsurge in the use of online platforms. Equal has consistently ensured that its strategy of creating compliance-ready solutions is well aligned with the above changes. The positive development is that because Equal is proactive in this regard they can provide their clients with value-added services in an environment that is forever changing.
Conclusions For the Industry of Digital Identity
The favorable results of Equal’s funding round indicate that the interest in the market space of digital verification, both in India and in the rest of the world, is likely to grow. As businesses in the banking, telecom or e-commerce industries look for ways to deliver a seamless, safe experience to their customers as well as avoid fraud, the need for effective and reliable KYC solutions continues to increase. New exciting companies such as Equal are part of the trend of moving toward a digital-first environment where the user experience, security, and compliance are the focus.
The increase in precipitation of Equal’s growth shows the other side of the coin which is the increased attention from investors towards identity verification and compliance startups which are the key components for the digitalization strategies. Equal is establishing itself as a major player in the digital identity and verification space in India and through collaboration with firms across multiple sectors aspires to dominate this market with future international ventures.
Conclusion
The latest round of investment for Equal is favorable towards its ambition of changing how identity verification is carried out in India and in other countries. With a variety of investors behind the firm, it should be in a position to grow its portfolio, create new technologies, and enhance India’s digital economy. As Equal expands its operations, it is anticipated to be at the forefront in influencing how identity verification, compliance, and data remains secure in the digital age.
