Digital identity company Yoti receives £20 million debt funding from HSBC and existing shareholders

Yoti, a digital ID company located in the UK, recently received £12.5 million in debt funding from HSBC. In addition, the company also received £7.5 million in convertible debt funding from its existing shareholders, totaling £20 million.

Yoti will use the £20 million received from its backers to fuel its continued growth, with the goal of achieving profitability as the first of its milestones, and then move beyond that.

Demand for digital ID attracts partners and funding

The funds came in during the most recent funding round, which follows the £10 million that the company received earlier this year as an investment from Lloyds Banking Group. To date, the firm has received more than £166 million in funding from various supporters. The majority came from its founders, as well as various angel investors who supported the firm ever since its conception in 2014.

Thanks to the funds, Yoti was able to develop its proprietary technologies, which concern age assurance, identity verification, authentication, and e-signatures. This includes the world-class in-house facial age estimation and facial recognition AI.

Yoti was founded in the UK, and it has remained headquartered in its home country ever since. However, it offers a range of various digital ID solutions that have since made it safer and easier for people to prove their identities. The company records over 6.5 million identity and age checks per month.

Furthermore, Yoti is also consistently announcing new partnerships with various entities around the globe. That includes governments, banking partners, financial institutions, gambling establishments and companies, as well as firms involved with gaming, social media, dating, employment, retail, adult, and vaping sectors.

Yoti is the sixth-fastest growing firm in the UK

Given the massive demand for its solutions, it comes as no surprise that Yoti quickly became one of the fastest-growing tech firms in the United Kingdom. During the four-year period that ended in March 2023, the firm has seen its revenue skyrocket by 6.074%. It went from £101,168 to £6.24 million.

Such growth would have ranked it in 6th place among the Deloitte 2023 UK Fast 50. The firm has also seen a rapid increase in its monthly revenue, which went up by 150% in the last 12 months, going from £466,143 in October 2022 to £1.16 million in October 2023.

As for the firm’s clients, they include some of the largest and most recognizable companies on the global scale, and of nearly every industry. Some examples include Sony Playstation, OnlyFans, Meta, the Government of Jersey, Regal Gaming, Improvement SErvice in Scotland, Yubo, First Advantage, Aldi, Sterling Check, Checkr, Aylo, Connells, HireRight, Muzz, as well as NSPCC.

Yoti has reached over 13 million app downloads globally

Earlier this year, Yoti launched a new Digital ID app which was developed in partnership with Lloyds Bank. It also created Digital ID Connect, which is the largest digital ID network in the UK. This solution came as a result of a partnership involving Lloyds Bank, Post Office, and Yoti itself.

Since its creation, more than four million UK citizens have downloaded one or more of Yoti’s Digital ID apps, while on the global level, the company has over 13 million app installs, and counting. This year alone has brought more than a million UK citizens to the company, as they downloaded one or more of its apps (Post Office EasyID, Yoti ID, Lloyds Bank Smart ID)-

The firm’s CEO, Robin Tombs, said: “I’m delighted to announce this funding round, including £12.5 million from HSBC, which follows another exciting and fast paced year for Yoti. We’re growing quickly and this £20 million funding should comfortably see us through to profitability.”