OCR Labs Secures $30 Million Series B

23 Feb, 2022
Matt Ingman

OCR Labs a Leading Technology Provider of Digital Identity Verification Globally Secures $30 Million Series B

  • The new funding comes from Equable Capital, a New York-based family office founded by Jonathan Smidt, a former partner at investment firm KKR
  • OCR Labs’ proprietary technology provides fully automated identity verification through ID document validation combined with facial biometrics
  • Over the past 12 months OCR Labs achieved a 500 percent increase in new clients and tripled the size of its team
  • Customers come from a wide range of sectors including government, finance, insurance, wireless carriers and more, and include Cognito, recently acquired by Plaid, Zip, Virgin Money, and CoinMetro.

London, UK. 06.00AM GMT 23rd February 2022: OCR Labs has announced a $30 million Series B round led by New York-based Equable Capital to expand its team in North America and EMEA. OCR Labs is headquartered in London.

Viewed as a technology leader in the digital identity verification space, OCR Labs solves major challenges including identity fraud and regulatory compliance, using its proprietary technology. The end-to-end solution supports Anti Money Laundering (AML) and Know Your Customer (KYC) regulations and improves customer identity verification while reducing fraud.

OCR Labs was originally founded in 2016 by Matthew Adams and Daniel Aiello and launched its first product in 2018. Adams and Aiello wanted to streamline customer onboarding whilst protecting organisations against the increasing risk of fraud and identity theft.

OCR Labs is the only provider with unique deep learning engines that allows it to control the entire identity verification flow without human intervention. The founders invested in developing this technology after identifying issues in the market that included the use of document templates and higher error rates with different skin tones from existing solutions.

Since announcing its Series A last year, OCR Labs has continued to scale into the UK and European markets. As part of its Series B, it is bolstering its international growth with a new office in North America, a direct sales force, and hiring a global Chief Revenue Officer. OCR Labs has raised $46M through its combined Series A and B. Previous investors include OYAK and Halkin Ventures.

John Myers, CEO of OCR Labs commented, “2021 was an incredible year for OCR Labs, with continued validation from customers who have chosen us as their provider for online digital identity verification. This investment provides us with the capital to continue our growth while bringing a value-added investor on to our board. Our vision remains unchanged: we strive to be the leading technology provider of digital identity verification, globally. The market opportunity continues to grow, and with our expansion in the US, and investment in our global sales effort, we’re in a phenomenal position to grow our customer base.“

A new study has found that revenue for digital identity vendors will exceed $53Bn globally by 2026, doubling from $26 billion in 20211. The past year has seen OCR Labs grow its customer base substantially, with a 500 percent increase in new clients and doubling its growth rate every year in the last three years.

OCR Labs supports clients across industries including financial services, government, telco, crypto and a variety of platform-based businesses, including SaaS providers. Customers include the Australian Government, Vodafone, ZIP and BMW.

Alain Meier, Co-Founder and CEO of Cognito said “OCR Labs has been one of Cognito's preferred partners for ID document verification. The company is extremely nimble, and their products help to verify users that other systems struggle with. We have loved working with OCR Labs and look forward to growing with them after their Series B.”

OCR Labs’ fully automated solution removes the need for human intervention, speeding up identity verification and improving accuracy while ensuring customers have a smooth and seamless identity verification experience. Its proprietary technology is an accredited, biometric solution that combines optical character recognition (OCR), document fraud assessment, liveness detection, video fraud assessment, and face matching.

Jonathan Smidt, Founder of Equable Capital said, “Our investment in OCR Labs was the culmination of a lot of work to find the leading provider of identity verification using identity documents and facial matching. OCR Labs’ solution has the highest accuracy and lowest error rates while protecting customer data and privacy and meeting the highest third-party testing and accreditations standards.”

Smidt continued, “Matt Adams and Daniel Aiello have developed the leading technology for online digital identity verification that has been validated through OCR Lab’s adoption by the leading financial institutions, governments and more, globally. We’re excited to support the team in their international growth, particularly as they increase their focus on the US. ”

Speaking on the investment and relationship with Equable Capital, John Myers, added, “We are extremely appreciative of our original investors Halkin Ventures and OYAK for their support and faith and we are already seeing the impact Equable Capital is having on OCR Labs by bringing Jonathan’s expertise operating in both the US and European markets as well as his deep set of relationships across a broad set of industries and potential customers. We are excited to have Equable as an investor and partner as we expand in North America.”

For more information go to https://ocrlabs.com/

ENDS

Notes to Editors

1 https://www.businesswire.com/news/home/20220130005003/en/Juniper-Research-Digital-Identity-Revenue-to-Exceed-53-Billion-Globally-by-2026-as-Verification-Becomes-Critical

Press Kit: Available here

Press Contact

CEW Communications for OCR Labs - Cathy White, cathy@cewcomms.com, +44(0)7791 232834

About OCR Labs

OCR Labs is focused on making user verification effortless through technology. We build intelligent tools that protect users from identity fraud while enabling a seamless user experience. We’re focused on removing the burden of identity verification for our customers so they can focus on scaling their business without the compliance and operational overheads.

OCR Labs uses advanced image analysis and deep learning technology to accelerate good users and stay ahead of fraudsters. We securely verify your users in seconds with just their ID and a smartphone - from anywhere in the world. We verify more than 15,000 documents in over 230 countries and principalities - more than any other identity verification provider.

Our verification solution is used by startups through global enterprises including Westpac, the Australian Government, Vodafone, ZIP, BMW and ANZ. Founded in Australia in 2018, OCR Labs is headquartered in London, UK with offices in Australia, Turkey and North American operations opening soon.

OCR Labs Certifications

OCR Labs meets the most stringent privacy, data protection, security, resilience standards and global digital identity trust frameworks - including Australian TDIF accreditation as an Identity Service Provider, SOC Type 1 & 2 and ISO 27001, 27017, 27018, 27701, 29100, 22301, 30107-3 (covering both PAD level 1 and 2), 19795 and 9001. OCR Labs is ranked #1 globally for detection of real and fraudulent individuals.

About Equable Capital LLC

Equable Capital is a family office with an investment strategy founded on patient partnerships with shareholders, management and key shareholders in pursuit of the long-term success of each business in which it invests. Equable invests its own capital as well as partnering with other like-minded investors.

Equable’s philosophy is that the long-term success of a business is enhanced through a focus on the key value drivers of the business, disciplined capital investment that achieves an acceptable risk adjusted rate of return and a focused acquisition and divestiture strategy. It has also become increasingly important for companies to have a proactive and considered approach to how they interact with their stakeholders. These are all areas where Equable seeks to be a value-added partner.

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Matt Ingman

Head of Marketing

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23 Feb, 2022
Matt Ingman
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Identity Verification

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