Authologic secures $8.2M to fight AI-driven identity fraud with Global e-ID Hub
Authologic, a global digital identity verification platform, has raised $8.2 million in its Series A funding round, led by European VC firm OpenOcean. YCombinator, Peak Capital, and SMOK VC also contributed, backing Authologic's mission to modernise KYC and AML processes with secure e-ID solutions. Traditional KYC systems that rely on document images are becoming outdated, as AI-generated fake documents make these methods increasingly vulnerable to fraud, identity theft, and compliance issues. Authologic’s platform offers a more secure approach, addressing the flaws in legacy verification systems.
With the growing complexity of cross-border identity verification and the rise of regulations like eIDAS 2.0, industries such as financial services, gaming, telecoms, and crypto are under pressure to adopt eIDs and improve their identity verification methods. Many organisations face challenges as eIDs become mandatory for authentication, including use as two-factor authentication for transactions.
Authologic’s platform simplifies and streamlines digital identity verification, providing businesses with a faster, more secure onboarding process. By reducing reliance on manual methods and offering a seamless user experience, the platform cuts fraud risk and operational costs while improving customer satisfaction.
By aggregating hundreds of e-ID systems, Authologic helps companies transition from outdated methods like photo uploads and plastic IDs to secure digital verification, all while protecting personal data and privacy. Its platform integrates smoothly with existing KYC infrastructures, supporting businesses in adopting digital identity solutions and complying with emerging regulations.
With offices in Warsaw, London, and San Francisco, the new funding allows Authologic to expand its reach internationally, building on its existing client base, which includes well-known names like Santander Leasing, LV Bet, and eToro.
Krzysztof Klimczak, CEO and Co-Founder of Authologic, said: "Identity is the foundation of a well-functioning society. If we can’t be sure who we’re dealing with online, it undermines trust in marketplaces, social interactions, and even democracy itself. That’s why digital identities must be easy to use and the practice of taking photographs of plastic ID cards should be left in the past.
“Our platform is designed to help firms counteract the increase in AI-driven fraud, offering them a seamless, secure, and automated solution that stays ahead of emerging fraud tactics. We are excited to have the support of our investors as we expand our reach and continue to innovate in the digital identity space."
Tony Nysten, Partner at OpenOcean, commented: "For decades, people in the Nordics have used bank e-IDs to sign contracts, purchase items, and even book dentist appointments online. With the Nordics having paved the way in digital identities, we believe Authologic is on the cusp of driving a revolution on a global scale. The demand for secure, efficient and easy-to-use identity verification is universal, and Authologic's approach is precisely what the market needs. Its vision of building a new, trust-based identity layer on the internet resonates deeply with us, and we are thrilled to support the team as they lead the charge in making this vision a reality. Authologic is reshaping online identity."
Nicolas Dessaigne, Group Partner at YCombinator, remarked: "At Y Combinator, we have a front-row seat to seeing AI fundamentally transform the way businesses operate, and it's become clear that traditional identity verification methods, reliant on outdated practices like photos of physical documents, are no longer sufficient. Since going through YC in 2021, Authologic has consistently demonstrated its ability to stay ahead of these trends. We are proud to back a team that not only meets the challenges of today but also anticipates the needs of tomorrow, driving the future of secure, automated identity verification."
Adrian Kaczmarek, Head of Digital Sales at Santander Leasing, said: “Onboarding customers to financial products at scale is a challenging task. First of all, providing only document-based ID verification doesn’t cut it anymore. You need multiple options, including government-issued digital IDs and Bank IDs. Second of all, the market is changing rapidly and as our business grows, we require new methods and new capabilities. Through the one-time integration of Authologic e-ID Hub, we started to address these challenges. We now have the flexibility to add new integrations and capabilities within days, not months.”
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