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Y Combinator Backs Didit in $7.5M Identity Fraud Round

Key Points
  • Didit raised $7.5M in seed funding from Y Combinator, Pioneer Fund, Phosphor Capital, SaaSholic, Rebel Fund, Orange Collective, and Founders Future, plus angel investors.
  • The San Francisco startup offers one API covering identity verification and fraud detection, serving over 2,000 customers across 220+ countries.
  • Didit is profitable and growing 30% month over month, with 80% of customers having no prior identity verification provider.
May 26, 2026
Didit team
Credits: Didit

Funding details

Didit, a San Francisco startup founded in 2023 by twin brothers Alberto and Alejandro Rosas, has closed $7.5 million in seed funding. The company builds the infrastructure that lets developers verify people, businesses, AI agents, and digital transactions through a single programming interface, or API. Both founders are AI engineers who started the company after concluding that existing verification tools were too slow, too opaque, and too poorly designed to handle what fraud actually looks like today.

The timing reflects real pressure on the industry. Deepfake usage in biometric fraud attempts surged 58% year-on-year, while injection attacks rose 40% over the same period. Regulation is also tightening: under Europe's eIDAS 2.0 framework, every EU member state must offer a digital identity wallet by December 2026, with banks and payment providers required to accept them a year later. Together, rising fraud and new legal requirements are pushing more online businesses to invest in identity verification for the first time. The market is projected to reach $29.32 billion by 2030, up from $14.34 billion in 2025.

The $7.5 million total includes a $6 million follow-on announced today. Investors in the round include Y Combinator, Pioneer Fund, Orange Collective, Founders Future, Phosphor Capital, SaaSholic, and Rebel Fund. Angel investors include Tomer London, co-founder of Gusto, and Taro Fukuyama, founder of Fond.

Why the Existing Identity Market Was Unprepared for AI-Era Fraud

For years, identity verification was dominated by providers that built their tools for compliance departments, not engineering teams. Most required a sales call before sharing pricing. Integrations took weeks. And most were designed well before generative AI made synthetic identities and deepfakes cheap and fast to produce.

Didit analyzes more than 200 signals per verification session: document authenticity, biometric liveness, injection attack detection, deepfake analysis, and behavioral patterns. The company builds its AI models internally, without relying on third-party systems. It has also built country-specific verification flows, tuned for different face types, skin tones, document formats, and lighting conditions.

"AI will 1,000x the identity market. In the next decade, every platform will need to verify not only people and businesses, but also agents, transactions, wallets, and delegated actions. Didit is building the identity infrastructure for that world." — Diego Gomes, Partner at SaaSholic

How Didit Plans to Use the Funding

The new capital will go toward expanding sales and marketing globally, broadening the platform's identity and fraud capabilities, and hiring across product, sales, and customer success. The company compares where it wants to take identity to what Stripe did for payments and Twilio did for communications, turning a fragmented, technical process into something developers can plug in quickly and build on top of.

Longer term, Didit is working toward an identity wallet that lets a person verify once and reuse those credentials across different platforms. For a developer, that would mean one API call. For an AI agent, one MCP tool call. For an end user, one click. The platform already handles a range of use cases: biometric authentication, digital signature verification, verified social profiles, age compliance, and face-based payment authentication.

"No one was building for what was actually happening. Fraud kept getting smarter, regulators kept getting stricter, and millions of new businesses suddenly needed to verify their users — but every existing provider couldn't catch the new fraud, had painful onboarding, and hid pricing behind a sales call. So we built the opposite: one API for identity and fraud, public per-module pricing, and an integration so simple that any developer can ship it in five minutes — or any AI coding agent like Claude Code, Codex, or Cursor can ship it in a single prompt." — Alberto Rosas, CEO of Didit

What Didit Does and How Its Product Works

Alberto Rosas is CEO; his twin brother Alejandro Rosas serves as CTO. Their core product is one API covering KYC (Know Your Customer), KYB (Know Your Business), transaction monitoring, and wallet screening. It connects to over 1,000 government data sources worldwide. Pricing is listed publicly, per module, with no minimum contracts. A full KYC verification costs $0.33. Wallet screening starts at $0.15. Developers receive 500 free verifications per month.

Spain's Financial Sandbox, supervised by SEPBLAC (Spain's Financial Intelligence Unit), the CNMV, and the Treasury, has validated Didit's NFC and active liveness verification as equivalent to or more secure than in-person verification. This is the kind of regulatory recognition that carries weight in industries like banking and financial services, where regulators set strict standards for how identity must be confirmed.

The company now serves more than 2,000 customers across fintech, crypto, marketplaces, iGaming, mobility, and government sectors, operating across more than 220 countries and territories. Revenue has grown over 30% month over month and the company is already profitable. 80% of its customers had not previously used any identity verification provider, a figure that suggests Didit is generating new demand rather than simply competing for existing budgets.

The Investors Behind the Round

The round brought together Y Combinator (W26 batch), Pioneer Fund, Orange Collective, Founders Future, Phosphor Capital, SaaSholic, and Rebel Fund, with angel participation from Tomer London of Gusto and Taro Fukuyama of Fond. Total seed financing stands at $7.5 million.

Phosphor Capital was founded by Kulveer Taggar, who previously built Zeus, a company where fraud caused direct financial losses.

"At Zeus we were constantly fighting fraudsters. Sophisticated criminals with real IDs, costing us real money. The tools weren't good enough then. Alberto and Alejandro saw that gap and built something fundamentally better. Identity verification is becoming mandatory for every company on the internet, and most of the existing tools weren't built for an AI-native world. Didit was." — Kulveer Taggar, Founder of Phosphor Capital

Funding details

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