The value of the proposed acquisition is undisclosed — but all of Onfido's backers are set to make a profit on their investment, says company.
In brief:
- London-based customer identity verification scaleup Onfido has entered into talks to be acquired by US payments company Entrust.
- Onfido, which launched in 2012, provides AI-driven biometric and document identification tools to companies in the financial, e-commerce and gaming sectors.
- Onfido made an operating loss of £70mn in the year to January 31 2023, up from £45mn the previous year, according to Companies House filings.
What does this mean?
While the value of the proposed acquisition is undisclosed, Husayn Kassai, founder and former CEO at Onfido — and now advisor to the company — tells Sifted that all the startup’s backers are set to make a profit on their investment. Oxford University, Onfido’s first investor with a cheque of £12k in 2012, could make a 320x return, he adds. The acquisition remains subject to regulatory approval, which Kassai hopes won’t “take longer than a few months, at the latest”.
