Funding Round attributes
On January 30, 2025, ID.me, a prominent digital identity wallet provider, announced the successful closure of a $275 million credit facility provided by funds managed by Ares Management. In addition to this credit facility, Ares Management plans to make a substantial equity investment in ID.me. The capital from this financing is intended to accelerate ID.me's growth strategy, focusing on revolutionizing secure online identity verification, enhancing digital access, safeguarding privacy, and preventing fraud.
Founded with the mission to simplify secure online identity verification, ID.me has developed a digital wallet that allows users to verify their identity once and subsequently log in across multiple websites without the need to create new accounts or undergo repeated verification processes. As of the announcement, over 139 million users have registered with ID.me's digital wallet, with more than 65 million of these users verified to the federal standards of Identity Assurance Level 2 (IAL2) consumer authentication. This growth is reflected in the company's revenue, which has increased by over 450% from 2020 through 2024.
ID.me distinguishes itself as the only digital wallet that meets federal government standards for secure login and multi-factor authentication, offering online, video chat, and in-person options for identity verification at the National Institute of Standards and Technology (NIST) Identity Assurance Level 2. This compliance ensures that users can securely log in and prove their identity across various platforms, including government agencies, healthcare organizations, commercial enterprises, and non-profit organizations within the ID.me network.
Ares Management, a leading global alternative investment manager with more than $464 billion in assets under management as of September 30, 2024, brings decades of experience investing significant capital in high-quality software and technology opportunities. John Clark, Principal at Ares Management, stated, "ID.me is a category and thought leader in the digital identity space, enabling government agency and commercial enterprise customers to navigate the demand for secure and inclusive digital access to their services while respecting end-user data privacy." He emphasized the increasing importance of digital identity wallets in facilitating consistent and fraud-resistant connections between large organizations and their users, especially as the world continues to be transformed by AI and vectors of fraud proliferate. Clark expressed enthusiasm about working with Blake Hall and the ID.me team, looking forward to supporting the company's next phase of growth.
In summary, the $275 million financing from Ares Management, along with the planned equity investment, positions ID.me to further enhance its digital identity verification services. The company aims to continue its rapid growth trajectory, focusing on expanding digital access, protecting user privacy, preventing fraud, and providing a seamless user experience across its network of government, healthcare, commercial, and non-profit partners.
