ID.me Secures $340 Million Funding, Valuation Surpasses $2 Billion

ID.me announced on March 6, 2025, that it has successfully raised $340 million in its latest funding round, which includes a credit facility. The investment, led by the firm Ribbit Capital, has elevated the company’s valuation to over $2 billion. This Series E funding round also saw contributions from existing investors such as Ares Capital and Moonshots Capital, along with new investor Positive Sum. The funds will primarily be allocated towards initiatives aimed at combating AI-driven fraud.

The significance of this funding is underscored by a growing interest in artificial intelligence among venture capitalists, despite the prevailing macroeconomic uncertainties. In 2025, private venture capital funding has shown an uptick as startups have opted to delay public offerings. Investors are keenly focused on companies that leverage AI technologies, as these advancements play a pivotal role in addressing emerging fraud risks.

As cybercrime increasingly exploits the vulnerabilities of online platforms, the need for robust digital identity verification solutions has never been more critical. ID.me’s digital identity wallet, which stores and manages personal information and credentials, is gaining traction. The company collaborates with various U.S. government agencies, including the Department of Veterans Affairs and the Internal Revenue Service, to deliver essential identity verification services.

During the pandemic, ID.me was credited by seven states with preventing over $270 billion in unemployment fraud. The influx of funding will also enable ID.me to enhance access to secure and reusable digital identities, further solidifying its role in the digital landscape.

Adapting to Evolving Fraud Risks

“Fraud is evolving at the speed of AI—and so are we,” stated Blake Hall, Founder and CEO of ID.me. His comments highlight the urgency of adapting to an environment where new fraud risks are continuously emerging. The company’s digital identity wallet is positioned to play an increasingly vital role in fostering secure connections between large organizations and their users.

John Clark from Ares Management echoed this sentiment, emphasizing the necessity of minimizing friction in user experiences while enhancing security. “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,” he remarked.

Expanding User Base and Impact

In 2024 alone, ID.me reported the addition of 20.4 million new wallets, bringing its total user base to over 152 million. This figure represents nearly 60 percent of U.S. adults, highlighting the company’s significant reach and influence in the digital identity sector.

As the landscape of digital security continues to evolve, ID.me stands at the forefront of innovation, not only aiming to secure identities but also to enhance user experience across various platforms. With its latest funding round, the company is well-positioned to tackle the challenges posed by AI-driven fraud, ensuring that it remains a critical player in safeguarding digital identities.