PassFort, a RegTech SaaS for KYC and AML, nets $16.2M

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based in london passport, a SaaS provider that helps businesses meet compliance requirements such as KYC (Know Your Customer) and AML (Anti-Money Laundering) reporting, has raised a $16.2 million Series A led by Level Equity, a US growth equity fund. has been shut down.

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Existing investors OpenOcean, Episode 1 and Entrepreneur First, the startup founded in 2015, also participated in the round. Series A is a mix of equity and debt, with $4.89M worth of venture debt being provided by Shard Credit Partners.

Passfort tells Nerdshala that it now has a total of 54 customers, adding that most are in the digital payments sector. It is also selling its SaaS to customers in forex, banking and (ofc) crypto. It’s a few “major” customer wins that precede this growth – check out the likes of Curve and WorldRemit.


The new funding will be earmarked to advance its development globally – PassFort notes that it has hired a new C-Suite to lead the planned global push for its development team.

It is also hiring more employees in business development and marketing, and plans to substantially increase spending in marketing, sales and customer support roles as it prepares to scale.

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“On the product side, we are developing solutions to meet the demands of the changing digital economy and the threats it faces,” says CEO and co-founder Donald Gillies. “This means investing heavily in our new compliance policy cloud, system-to-system integration with market-leading CRM and transaction monitoring systems, as well as a data team capable of gaining valuable real-time insights into our customer network.” to build.”

PassFort says its revenue has grown ~2.5x over the past 12 months.

Gillies credits COVID-19 for really hitting the digital “accelerator” and driving adoption for compliance tools, as fintech and regulated businesses look to streamline their approach to customer on-boarding and risk monitoring .

With this accelerated digital transformation, he points to an increase in cybercrime and increasingly sophisticated financial crime driving demand for compliance tools, and a “huge” increase in the number of regulations announced since COVID-19, noting that : “Estimates from those who track regulatory changes stated that as of August 2020, more than 1,330 COVID-19 related regulatory announcements were made by regulators globally.

As Passfort’s marketing says, in addition to offering an “always-on picture of risk,” the platform provides a single place to access and manage customer profiles, while also centralizing records for audit purposes. Is.

PassFort’s SaaS also tracks efficiency – helping customers see where holdups may be in the onboarding process, to help improve customer experience as well as provide comprehensive support to compliance teams.

The startup says that its integration model is such that it can “ingest datasets from any provider and interoperate with any system”, so – for example – at this stage there are more than 25 data providers for pre- There are built-in connectors.

It also provides a single API to integrate with the customer’s existing back-office systems.

Another feature of SaaS is that it focuses on “low to no-code” – to increase reach and provide customers with high complexity in their compliance requirements (such as multiple customer types, multiple product lines and multi-jurisdictions). To assist customers. This includes a smart policy builder with a ‘drag and drop’ interface to help customers configure complex workflows.

On the competitive side, PassFort names Dublin-based Fenergo as its closest competitor, but says it is targeting a broader market – comparing its own product to ‘Salesforce for compliance teams’ and says it aims to bring SaaS into the hands of “every financial”. Crime and Compliance Team in the World”.

Commenting in a statement, Charles Chen, Partner at Level Equity – who is now joining PassFort’s board of directors – said: “Over the past few years, financial institutions and organizations have experienced exponential growth in business volume and data. In compliance with ever-evolving regulatory laws, we have experienced an unprecedented increase in sophisticated financial crime activity as channels in financial systems have been digitized.

“This underscores the importance of compliance matters such as AML/KYC, yet companies often have to weigh the trade-offs between speed, compliance and automation. PassFort solves this challenge by providing a next-generation RegTech software solution. Enables customers to deliver a seamless customer onboarding experience, maintains best-in-class monitoring capabilities, and balances automation versus human touch through our intelligent orchestration engine. Thrilled to partner with an industry thinker and look forward to supporting the company’s future growth initiatives.”

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