Entrust in Talks to Acquire AI-powered Verification Startup Onfido

In a significant development, US payments company Entrust is in exclusive discussions to acquire London-based startup, Onfido. Known for its global leadership in AI-powered identity verification technology, Onfido's inclusion in Entrust's portfolio promises to escalate the robustness of identity solutions for individuals, enterprises, and institutions.

Onfido: A Success Story Against Odds

Onfido, initially founded in 2012, has overcome numerous hurdles to become a recognized leader in the field of digital identity verification. The founders, Ruhul Amin, Eamon Jubbawy, and the author, faced rejections, oversights in investment fulfillment, and administrative challenges, specifically in the American market. Despite these roadblocks, the trio's complementary skills and reliance on the burgeoning UK startup scene of the early 2010s fueled their resolve to succeed.

A Mission-Driven Approach

The founders of Onfido underscored the importance of a mission-driven approach and a culture of mutual support. This philosophy helped nurture a new generation of founders within its team. A significant breakthrough arrived through a collaboration with Alexandra Depledge, founder of Teddle. Together, they developed a robust online identity verification technology that soon attracted mainstream banks and various industries as clients.

Key Lessons from Onfido's Journey

Onfido's journey offers valuable lessons. The company's approach to equity ownership for employees and the encouragement of ambitious founders and employees underscore the importance of a supportive work culture. Onfido's growth has been fueled by strategic advice and investment from a network of angel investors and advisors.

The company boasts over $130 million in annual recurring revenue (ARR) and a workforce of more than 500 employees. With over 1,200 customers globally, its potential acquisition by Entrust is expected to bolster identity security solutions at a crucial time when enterprises and institutions require them the most. Of note, the first investor in Onfido is expected to receive a significant 320x return on investment, marking a milestone in the company's journey.

The proposed acquisition is subject to regulatory approval, and the value remains undisclosed. However, Entrust CEO Todd Wilkinson has expressed his interest not only in Onfido’s technology but also its talent. He has assured that the acquisition would not result in cost reductions or layoffs for Onfido's 500-strong workforce.