A Nigerian startup providing digital identity solutions, Seamfix, has secured $4.5 million to fund the expansion of its digital ID and credential services.
The private equity funding round was secured from, Alitheia IDF, a gender lens investing fund. According to a statement from the company, the funding would also enable Seamfix to scale the technology infrastructure that underpins its solutions, improve data flow crucial for continental trade and integration, and kickstart the expansion of its digital ID and credential services into five new African countries.
Starting in Nigeria, Seamfix provides identity creation, verification, and transaction accreditation solutions for large organizations and government agencies across multiple African countries. The company said new funding represents its first institutional investment, and it would enable the company to expand its services to Ghana, Kenya, South Africa, Ethiopia, and Uganda.
New board members
With the funding, Seamfix said it will be adding new members from the investors. According to the statement, the Co-founder and Principal Partner of Alitheia Capital, Tokunboh Ishmael has now joined the board of Seamfix.
Also joining Seamfix board member is Frank Atube, who is described as a transformational change leader with a decade of success in orchestrating strategic initiatives across a variety of sectors.
Commenting on the funding, the Group CEO, and co-founder of Seamfix, Chimezie Emewulu, said:
“We are thrilled to announce this new funding, which marks a significant milestone in our journey of shaping the future of digital ID verification in Africa and connecting Africa to the rest of the world. Digital identity is a right – not a privilege – and this belief underpins our innovation and commitment to enabling individuals and businesses in Africa to access all the benefits that come with having verifiable identities.
“This investment not only validates our vision but also empowers us to expand our reach and innovate further. We are thankful for the support from Alitheia IDF and their commitment to our mission, and we are excited to lead the charge in shaping a digitally inclusive Africa.”
Also commenting, the Principal Partner, Alitheia IDF, Tokunboh Ishmael, said with the investment Alitheia IDF is working with Seamfix to amplify its work in enabling millions of women to participate in the African economy and reach their full potential by providing crucial identification services and empowering businesses across the continent to scale.
Digital ID gaining traction
Seamfix operates in the burgeoning digital identity space that boasts the likes of VerifyMe, YouVerify, Identitrypass, and Smile ID, among others. The funding received by Seamfix indicated that investors’ attention is also shifting to this industry considered crucial for unlocking opportunities.
Earlier in March this year, Nairametrics reported that Youverify secured $2.5 million in funding in a pre-Series A round from Elm, which specializes in offering ready-made and customized digital solutions to public and private institutions in Saudi Arabia.
In August 2022, Youverify had secured a $1 million seed round extension. This was after raising a $1.5 million round in 2020, bringing its total seed raise to $2.5 million.
From financial participation and efficiency in government services to public health and job creation, digital ID and verification systems are a fundamental driver of economic growth on the continent. A recent report suggested that African countries that implement effective digital ID systems can boost their GDP by up to 13 percent.
