Digital banking infrastructure provider Signzy has acquired Bengaluru-based Difenz, a fraud risk management solutions provider, in a cash-and-equity deal at a valuation of $5 million.
According to Signzy, the acquisition will allow it to strengthen its AI play. The startup will now be able to provide AI-led Know Your Customer (KYC) compliance solutions to financial institutions.
Further, the acquisition would help Signzy provide its clients with offerings like advanced anti-money laundering (AML) screening and transaction monitoring.
Following the acquisition, the co-founders of Difenz have been appointed as partners at Signzy. The acquisition also provided an exit to early-stage venture capital firm 8i Ventures. The VC firm had invested around Rs 4.5 crore in Difenz’ seed funding round in 2021.
Founded in 2020 by Sivaram Jayaraman and Madhu Srinivas, Difenz offers a full-stack financial risk management (FRM) platform for transaction monitoring, which can be integrated with any type of payment like cards, POS, payment gateways, core banking systems and wallets.
Signzy provides digital onboarding solutions to banks and NBFCs via its no-code platform. The startup claims to work with over 240 financial institutions and counts the likes of State Bank of India, Axis Bank, and IndusInd Bank among its customers.
Signzy had raised $26 million in its Series B round led by Gaja Capital. Overall, it has raised more than $37 million to date and counts the likes of Vertex Ventures and Arkam Ventures among its backers.
