Estonia-based identity verification firm Veriff secures $100 million in funding, marking its entry into the country’s growing roster of unicorn startups. (Invest in Estonia)
As reported by This Week in Asia on April 2, Estonian unicorn startups, Veriff and other companies, are targeting Southeast Asian markets and positioning Singapore as a gateway to enter the region’s market.
Founded in Tallinn in 2015 by Kaarel Kotkas, its core service includes identity verification (facial recognition, behavioural analysis, fraud detection) that is powered by artificial intelligence (AI). Veriff also offers Application Programming Interfaces (APIs) for online businesses. This startup company has notable clients, such as PayPal, Bumble, Visa, and other major digital platforms.
“Singapore, for me, shares quite a lot of similarities to Estonia, especially regarding digital services and digital identity adoption. We know that every single service eventually will depend on it and every country will get there with its own base,” said Kaarel Kotkas, the CEO of Veriff. He openly admits that he sees a big opportunity to scout prospects in Singapore, as it offers “[a] sophisticated market with high digital adoption, as well as access to capital and international talent.”
Recently, Veriff acquired Vespia, a major Estonian startup known for its usage in Know Your Business solutions, which help the company to accelerate due diligence among partners to reduce adverse risks of fraud.
Estonia is the world’s largest unicorns per capita, with over 10 billion-dollar companies accounting for 7,7 per million capita. It has attempted to expand its operations to Southeast Asia, by establishing the Estonian Business Hub in Singapore.
What does this mean for business?
Veriff’s expansion into Singapore has various business implications. For Singapore, as the 60% of ASEAN’s foreign direct investment (FDI) inflows, Veriff’s existence will further strengthen its position as a hub for digital trust solutions. Moreover, the Monetary Authority of Singapore (MAS) issued guidelines that will ease and provide certainty for Veriff’s business operations.
Regionally, Singapore can be a “natural gateway” for Estonian and other European firms to enter the ASEAN market, where Vietnam, Indonesia and Malaysia financial technology (fintech) companies are growing. Furthermore, its ability to facilitate identity verification can help reduce possible remittances in cross-border transactions.
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