ID.me secures $275M credit facility to scale digital wallet

ID.me has closed a $275 million credit facility from funds operated by Ares Management, which also plans to invest a substantial amount in company equity, according to an announcement.

More than 139 million people have an ID.me digital wallet, and 65 million of them have completed identity proofing to the IAL2 standard set by NIST. From 2020 to 2024, ID.me’s revenue has increased by 450 percent. The company claims to be the only digital wallet provider that meets U.S. federal government standards for secure logins and multi-factor authentication to IAL2 with online, video chat and in-person channels for identity verification.

ID.me digital wallets are used for interactions with government agencies, but also healthcare providers, non-profits and businesses in its network.

ID.me Founder and CEO Blake Hall says the credit facility and anticipated equity investment will be used to accelerate the company’s growth strategy and help it scale “to the next phase of growth and sustainable profitability.”

“Coming soon after our recent secondary tender, we are pleased that esteemed institutional investors are recognizing our market-leading outcomes expanding digital access, protecting privacy, fighting fraud, and ensuring frictionless user experience,” Hall says.

The tender offer Hall refers to was completed in November at a valuation of $1.8 billion.

“ID.me is a category and thought leader in the digital identity space, enabling government agency and commercial enterprise customers to navigate the demand for secure and inclusive digital access to their services while respecting end-user data privacy,” says John Clark, principal at Ares Management. “As the world continues to be transformed by AI and vectors of fraud proliferate, we believe that ID.me’s digital identity wallets will become increasingly important in facilitating the consistent and fraud-resistant connections between these large organizations and their users. Ares is excited to work with Blake and the rest of the ID.me team, and we look forward to supporting ID.me’s next phase of growth.”

Ares has more than $464 billion in assets under its management as of last September, and experience investing in software companies.

Article Topics

digital ID  |  digital identity  |  digital wallets  |  ID.me  |  investment