Signzy Acquires Bengaluru-based Difenz at $5 Million Valuation

Signzy, a digital banking infrastructure provider, has recently completed the acquisition of Bengaluru-based Difenz, a leading provider of fraud risk management solutions, in a cash-and-equity transaction valued at $5 million.

This strategic acquisition marks a significant milestone for Signzy, enhancing its artificial intelligence (AI) capabilities. With this integration, Signzy will offer advanced AI-led Know Your Customer (KYC) compliance solutions to financial institutions, reinforcing its position as a critical player in the digital banking sector.

Moreover, the acquisition of Difenz enables Signzy to expand its service offerings to include sophisticated anti-money laundering (AML) screening and transaction monitoring solutions, providing its clients with comprehensive financial risk management solutions.

As part of the acquisition, the co-founders of Difenz, Sivaram Jayaraman and Madhu Srinivas, have joined Signzy as partners, bringing their expertise and insights to drive innovation within the organization further. Additionally, this acquisition has facilitated an exit for early-stage venture capital firm 8i Ventures, which had previously invested approximately Rs 4.5 crore in Difenz’s seed funding round in 2021.

Established in 2020, Difenz has developed a robust full-stack financial risk management (FRM) platform for transaction monitoring. This platform offers seamless integration with various payment channels such as cards, point-of-sale (POS) systems, payment gateways, core banking systems, and digital wallets, enabling comprehensive risk mitigation strategies for financial institutions.

Signzy, on the other hand, specializes in providing digital onboarding solutions to banks and non-banking financial companies (NBFCs) through its innovative no-code platform. With a clientele comprising over 240 financial institutions, including prominent names like the State Bank of India, Axis Bank, and IndusInd Bank, Signzy has established itself as a trusted partner in the digital transformation journey of the banking sector.

The recent Series B funding round led by Gaja Capital, which saw Signzy raise $26 million, underscores investor confidence in the company’s vision and growth trajectory. To date, Signzy has raised over $37 million in funding and boasts an impressive roster of investors, including Vertex Ventures and Arkam Ventures.

By leveraging the synergies between Signzy and Difenz, the combined entity is poised to drive innovation, enhance operational efficiency, and deliver superior value to financial institutions across the globe. With a focus on harnessing the power of AI and cutting-edge technology, Signzy remains committed to revolutionizing the digital banking landscape and shaping the future of financial services.