Africa-focused startup Smile Identity, which enables ID verification and KYC compliance through artificial intelligence (AI) designed for African faces and identities, has secured a US$20 million Series B funding round to help it expand across the continent.
Smile Identity launched in 2017 with a mission to make it easy for Africans anywhere to quickly and easily prove their identity online and provide businesses with the tools and software they need to automate customer onboarding, verify identities, and prevent fraud.
To standardise identity verification across the continent and provide a single solution for a new generation of African companies, Smile Identity works with local ID authorities and has built a platform that combines ID validation with proprietary face verification and liveness checks to support non-surveillance, consent-based access and financial inclusion.
The startup raised a US$7 million Series A round in 2021, and has now banked a US$20 million Series B. The round was led by Costanoa and Norrsken22, with participation from Commerce Ventures, Courtside Ventures, Two Culture Capital, Valuestream Ventures, Intercept Ventures, Latitude, Future Africa, and 500 Fintech. Lexi Novitske from Norrsken22 will join Smile Identity’s board as part of the round.
Smile Identity will use the funding to expand its product and engineering team, accelerating the development and specialisation of its AI-powered biometrics, document verification, anti-fraud and compliance solutions tailored for African markets. The company is growing its existing teams in East, West, and Southern Africa and completing its pan-African reach with plans to enter Francophone and Arab-speaking markets through localised sales and support.
In addition, the company will continue working closely with regulators and ID authorities to build consumer consent standards into software, enforce African data protection laws, and share data on fraud and financial inclusion trends.
“We believe the majority of people are honest,” said Mark Straub, CEO and co-founder of Smile Identity. “The challenge in the digital age is to prove this, regardless of how a user onboards – whether via agents, apps, tablets, the web, blockchains or paper forms. We are thrilled to have the support of our partners and investors as we solve this problem across IDs, devices and compliance regimes to ensure Africans are among the most trusted consumers in the world.”
Novitske said Smile Identity was leading the way in Africa’s digital transformation, providing secure and verifiable identities for millions.
“Under the leadership of CEO Mark Straub, a top-notch team, and an on-the-ground presence across the continent, Smile is positioned to capture a significant share of Africa’s growing US$1.5 billion identity and KYC market opportunity. By empowering the continent with a foundation for safe transactions, Smile is driving financial service adoption and shaping the digital economy’s future,” she said.
