Digital identification startup Yoti has raised £20m from HSBC and shareholders to support its goal of securing profitability.
The funding was split between £12.5m of debt funding from the international bank and a further £7.5m of convertible debt funding from existing shareholders.
Founded in 2014, Yoti has become one of the most well-funded companies in the growing digital ID space that uses technology to verify user identity.
Yoti has partnered with brands including Meta, which launched a trial agreement with the company in 2022 to test ID verification on Instagram.
It uses facial analysis technology to verify it is the same person as pictured in an ID.
Yoti has also provided digital verification services for the Post Office, the UK Cinema Association – which represents 90% of UK cinema operators – and Lloyds Bank, which launched a digital ID app powered by Yoti in October last year after investing £10m into the company.
Other clients include OnlyFans, Sony PlayStation, Yubo, Aldi, the government of Jersey and NSPCC.
“It is good to see this last piece of funding in place to see Yoti through to profit,” said Yoti chair John Browett.
“Yoti has world-leading technology that makes great improvements to trust, security and safety in the digital world. It has been fabulous to work with Yoti as we have gone from startup to significant and increasing revenues.”
Since its launch, Yoti has raised more than £166m, making it the UK’s most funded digital ID startup. The burgeoning market, which was last year heavily endorsed by Tony Blair and William Hague, also includes startups OneID and Cheqd.