Compliance firm Laika notches $ 35 million
Compliance platform as a service Laika raised $ 35 million in a Series B funding round led by JP Morgan Growth Equity Partners, according to a press release on Tuesday, November 2. The cycle also saw participation from PayPal Ventures, as well as current investors Bain Capital Ventures, Canapi, Dashfund, Nyca and ThirdPrime.
Laika will allocate funds to design additional automation, embed audit experiences into the platform, grow its staff from 100 to 120 employees over the next year and expand the company’s growth in the market, according to the announcement.
The New York-based company uses its platform to help businesses implement compliance guidelines to meet various regulatory requirements. The platform combines automated information security workflows, audits, monitoring and supplier due diligence.
“Meeting compliance requirements for regulators or corporate clients can be a huge hurdle for startups with innovative products but small teams,” said Eva Pittas, Founder and COO of Laika. “Through [making it] Into a frictionless, subscription-based digital experience, Laika turns compliance from a sales barrier into a growth driver for frontline sales and business development teams. “
According to the announcement, Laika has experienced an annual growth in recurring revenue of 4.5 times, including 3.9 times the growth of its customer base year-on-year.
Know Your Customer (KYC) identity verification tools are another rapidly evolving product, especially for banks and financial institutions (FIs). Identity verification company SentiLink announced last month the launch of a “first of its kind” KYC offering, as reported by PYMNTS. Dubbed KYC Insights, the product will supplement its synthetic fraud and identity theft scores.
The SentiLink offer allows FIs to determine the identity of a customer opening an account. Additionally, the company said it could “dramatically reduce the cost of compliance.” KYC Insights is said to stop more identity fraud and authorize more users, provide more information on the risks posed by additional investigation requests, and follow the guidelines of the customer identification program.
Also read: SentiLink unveils ‘first of its kind’ KYC product
Identity verification may also soon be a requirement for WhatsApp users, according to a PYMNTS report. WhatsApp Pay in India verifies the phone number linked to the customer’s account, while Brazilian users verify their credit or debit cards to make payments on the Facebook messaging app. New additions to a beta suggest that identity verification may be in the works.
See also: WhatsApp users might have to verify their ID for payments