Digital identity solutions startup Incognia announced today that it has raised $31 million in new funding to support platform development and expand into new vertical industries, including consumer internet, financial services and e-commerce.

Founded in 2014, Icognia offers digital identity solutions that deliver user verification and account security across the digital journey. The company’s tech combines device fingerprinting and exact location intelligence data into one risk signal that can be customized for every stage of the user journey.

Incognia’s technology includes device tamper detection with advanced location spoofing prevention, tamper-proof location verification for user identification and phishing-resistant account security. Used individually or together, the company said, the features drive results such as an 80% reduction in account takeovers, a 51% reduction in fake account creation and an 84% reduction in new user abandonment.

The company’s service is designed to solve critical fraud and authentication challenges in industries such as food delivery, ride-hailing, person-to-person marketplaces and financial services.

Incognia has seen strong growth, tripling revenue, realizing 200% net retention and converting 100% of trials since June 2022. Notable customers include Nextdoor Holdings Inc., iFood Technogia Ltda, Wondo Inc., Banco Panamericano S.A., Stone Pagamentos S.A. and Turbi Participações S.A. Incognia has offices in San Jose, New York, and São Paulo and Recife, Brazil.

The round was led by Bessemer Venture Partners L.P., with FJ Labs Inc., Point72 L.P., Prosus Ventures BV and Valor Capital Group S.à r.l. also participating. 

“Incognia is quickly emerging as a market leader addressing fraud across a variety of customer segments, which is critical in today’s environment as fraudsters become increasingly sophisticated thanks to recent generative AI breakthroughs and the global proliferation of real-time payments,” said Bessemer partner Charles Birnbaum.

André Ferraz, co-founder and chief executive of Incognia, added that the financing “will allow us to deepen our product capabilities to stay at the forefront of fraud prevention and meet the growing market demand for a transparent solution capable of solving complex identity challenges.”

The new round is the second time Incognia has raised venture capital, having previously raised a round of $15.5 million led by Point72 in June 2022. The total amount raised to date by the company now stands at $46.5 million.

Image: Icognia