ID.me Secures $340 Million, Boosting Valuation to Over $2 Billion

ID.me announced on March 6, 2024, that it successfully raised $340 million in its latest funding round, along with a credit facility, which has elevated the company’s valuation to over $2 billion. The funding round was led by investment firm Ribbit Capital, with participation from existing investors such as Ares Capital and Moonshots Capital, as well as new investor Positive Sum. The funds will be primarily allocated towards combating AI-driven fraud, a growing concern in today’s digital landscape.

Investment Trends Amid Economic Uncertainties

Despite prevailing macroeconomic challenges, venture capital funding has seen a resurgence in 2025. Startups are opting to delay public offerings while benefiting from an abundant capital pool and heightened valuations. There is a pronounced investor interest in companies focusing on artificial intelligence, a trend that underscores the urgency of solutions like those offered by ID.me.

As cybercrime continues to exploit vulnerabilities in online platforms, the demand for digital identity verification has surged. ID.me positions itself as a pivotal player in this space, providing a digital identity wallet that securely stores and manages personal information and credentials. The company collaborates with various U.S. government agencies, including the Veterans Affairs and the Internal Revenue Service, to facilitate identity verification.

During the pandemic, ID.me played a crucial role in fraud prevention, with seven states attributing the prevention of over $270 billion in unemployment fraud to its services. The latest funding will also support the company’s mission to enhance access to secure and reusable digital identities.

Leadership Insights and Future Aspirations

“Fraud is evolving at the speed of AI—and so are we,” stated Blake Hall, Founder and CEO of ID.me. His remarks highlight the company’s proactive approach to adapting to the rapidly changing landscape of fraud risks.

John Clark from Ares Management emphasized the significance of ID.me’s offerings, stating, “As AI reshapes the economy and new fraud risks emerge, we believe ID.me’s digital identity wallet will become even more essential in enabling secure connections between large organizations and their users, while also minimizing friction and improving the end-user experience.”

The company has experienced considerable growth, adding 20.4 million new wallets in 2024 alone. Currently, ID.me serves over 152 million users, accounting for nearly 60 percent of U.S. adults.

With the latest investment, ID.me is well-positioned to expand its capabilities and further its mission of providing secure digital identities, addressing the pressing challenges posed by AI-driven fraud as it continues to evolve.