Software companies love the idea of predictable revenue. A customer signs up once, pays every month, and the business compounds without having to re-earn that dollar every time.
It’s a beautiful model in the US. In India, it’s a myth.
The reason, however, is structural, not cultural. Indian businesses don’t pay for the promise of value, but for the proof of it, transaction by transaction. That’s likely why no Indian SaaS company has ever reached unicorn scale on domestic revenue alone; each got there on the strength of customers abroad.
We don’t think this means India can’t produce a domestic SaaS unicorn. We think it means the winning model won’t look like a subscription at all. It’ll look like a company that gets paid for every transaction.
We invested in IDfy in 2024 and then followed up in 2026.
Here are three reasons why.
1. IDfy is the derivative of India’s growth story
IDfy’s transactional revenues come from identification, verification, and fraud detection and prevention for its clients. If the client’s business grows, IDfy’s revenue grows.
Post Covid, digitization accelerated sharply, and consumer behavior shifted with it. India was no exception. Moreover, the India Digital Stack and regulatory push by the Government were positive tailwinds.
As India’s economy grows, there will be more digital bank accounts, more digital loans disbursed, more demat accounts opened, more credit cards issued, more new insurance policies issued, more people entering the formal workforce, and more digital services used.
IDfy grows alongside all of it.
The company processes over 60 million verifications a month, and has impacted more than 150 million lives.
2. Diversification, without losing expertise
One of IDfy’s key differentiators is its proactive approach to diversifying sectoral coverage (BFSI, FMCG, conglomerates, the sharing economy), which sets it apart from competitors who focus primarily on BFSI. Its client roster spans over 1,500 clients, including HDFC Bank, Axis Bank, Zomato, Porter, HUL, Federal Bank.
IDfy’s offerings also span the entire value chain for its clients. From background verification to identity and risk management, this holistic approach sets IDfy apart from competitors who often provide more specialized, single-point solutions. In fact, the company now is the torchbearer of DPDP Act implementation.
The financials bear this out. IDfy’s revenue grew from roughly ₹145 crore in FY24 to roughly ₹188 crore in FY25.
This approach has enhanced market resilience and mitigated risk, positioning IDfy to thrive in a competitive landscape.
3. The strength of the team
The driving force behind IDfy’s current success lies in its team and product-first approach.
CEO Ashok Hariharan has steered IDfy with vision, persistence, and grit. He and his team have navigated various cycles of challenges and successes, emerging stronger and solidifying IDfy’s position as a resilient and reputable brand, built over more than a decade, since the company’s founding in 2011.
IDfy has been deliberate in assembling a team of industry bests. Ashish Sahni (Chief Technology Officer), Paritosh Desai (Chief Product Officer), Malcolm Gomes (Chief Operating Officer) and Wriju Ray (Chief Business Officer) bring decades of experience, as authorities in their respective domains.
IDfy’s product-first approach is reflected in its well-structured teams, organized into PODs led by Product and Tech Senior Managers with P&L responsibility. This organizational setup empowers them to prioritize building the right products, fostering innovation, and staying agile.
What we’re betting on
India doesn’t need another company trying to convince its customers that software is worth a monthly fee. It needs infrastructure that gets paid every time the country does something it’s already going to do more of. Like opening an online account, taking a loan, hiring someone, or buying a policy.
That’s the bet. Not a Silicon Valley-style unicorn, but an India-shaped path to the same outcome.
Since Series E, the market has kept validating that bet. IDfy raised a Series F round of ₹476 crore, led by Neo Asset Management, with Blume Ventures, Analog Capital, IndiaMART, Kae Capital and our own fund all participating.
IDfy doesn’t need to be sold to India; it’s already built into whatever India does next.