Didit raises USD $7.5 million seed to boost fraud platform

Didit has raised USD $7.5 million in seed funding, with backing from Y Combinator and several existing investors.

The financing includes an additional USD $6 million and will be used to expand the company's identity and fraud platform, support international growth and hire across product, sales and customer success.

Founded in 2023 by twin brothers Alberto Rosas and Alejandro Rosas, the San Francisco-based company sells tools that businesses use to verify people, companies, digital wallets and transactions. It says it now serves more than 1,500 active business customers across more than 220 countries and territories.

Investors in the round include Y Combinator, Pioneer Fund, Orange Collective, Founders Future, Phosphor Capital, SaaSholic and Rebel Fund. Angel investors include Tomer London, co-founder of Gusto, and Taro Fukuyama, founder of Fond.

The fundraising comes as identity checks become a bigger issue for online businesses. Companies are under growing pressure from fraud linked to generative AI, including deepfakes, synthetic identities and injection attacks, while regulators tighten verification requirements in areas such as finance and age checks.

Didit's platform connects to government data sources around the world and assesses more than 200 signals during each verification. These include document checks, biometric liveness, injection attack detection, deepfake analysis and behavioural indicators.

The company develops its own AI models in-house and has built country-specific verification flows for different document types and conditions. Its system is designed for developers to integrate quickly into apps and online services.

Market shift

Europe is one region where regulation is pushing digital identity further into the mainstream. Under eIDAS 2.0, each EU member state must provide a digital identity wallet, and banks and payment providers will be required to accept them.

That shift comes alongside broader compliance demands in financial services and other sectors. Businesses in crypto, marketplaces, iGaming, mobility and government are among those using identity checks more widely than under traditional know your customer rules.

According to Didit, 80% of its customers had not previously used an identity verification provider. It also said revenue has been growing by more than 30% month over month and that the business is already profitable.

Beyond standard customer checks, clients are using its tools for document-free liveness tests, real-time signer verification on digital signature services, verified-profile functions on social apps, biometric payment authentication and age estimation in compliance workflows.

Spanish validation

A key claim from the company is that its technology has been reviewed in Spain's Financial Sandbox. According to Didit, the process was supervised by SEPBLAC, CNMV and the Treasury, and found its NFC and active liveness verification to be equivalent to or more secure than in-person verification.

That validation may help Didit stand out in a crowded market where trust and compliance are becoming more important selling points. It also reflects a wider shift as identity checks move from a specialist function into a broader part of internet infrastructure.

"No one was building for what was actually happening," said Alberto Rosas, Founder and Chief Executive Officer of Didit. "Fraud kept getting smarter, regulators kept getting stricter, and millions of new businesses suddenly needed to verify their users - but every existing provider couldn't catch the new fraud, had painful onboarding, and hid pricing behind a sales call. So we built the opposite: one API for identity and fraud, public per-module pricing, and an integration so simple that any developer can ship it in five minutes - or any AI coding agent like Claude Code, Codex, or Cursor can ship it in a single prompt."

Investors argued that the market for identity products is broadening as online platforms need to verify more than individual users. That includes businesses, agents acting on behalf of users, wallets and transactions.

"AI will 1,000x the identity market," said Diego Gomes, Partner at SaaSholic. "In the next decade, every platform will need to verify not only people and businesses, but also agents, transactions, wallets, and delegated actions. Didit is building the identity infrastructure for that world."

Another investor said the need for stronger checks had become clear through direct experience with fraud losses at online businesses.

"At Zeus we were constantly fighting fraudsters," said Kulveer Taggar, Founder of Phosphor Capital. "Sophisticated criminals with real IDs, costing us real money. The tools weren't good enough then. Alberto and Alejandro saw that gap and built something fundamentally better. Identity verification is becoming mandatory for every company on the internet, and most of the existing tools weren't built for an AI-native world. Didit was."

Rosas said the company began with identity verification because it was the hardest part of the problem. "What we're really building is the trust layer for the internet," he said.