Digital Identity Leader CAF Defies Global Economic Headwinds, Grows Revenue by 250%
CAF, a global leader in the digital identity market, ended 2022 more than doubling its revenues, despite a difficult global economic environment where many startups are struggling.
In 2022 CAF continued its aggressive global expansion opening offices in the world’s major technology centers — including the USA, UK and Canada — and ended the year with a 250% increase in revenue, 80% increase in customers and doubling its staff. In all, the company monitored and analyzed more than 14 million transactions, preventing $79 million in fraud.
Founded in 2019, CAF — formerly known as “Combate à Fraude” — has been on an upward trajectory. In 2021 Darryl Green, an executive with more than 20 years of experience in the digital identity market, became CEO. Alongside co-founders Andre Edelbrock and Trevor Clarke, Green helped lead a transformative BRL 80 million Series A round for the startup.
“As we look back on the year, I could not be prouder of what we have achieved as a team. We successfully raised our Series A round, which we will reinvest in our growth; we hired some of the best and proven leaders across the globe and were able to successfully achieve all the goals initially set out for this year. As the rest of the tech companies in Brazil and across the globe felt the impact of changing market conditions, we grew our headcount and posted impressive revenue growth", said Green
In Latin America, the digital identity market has grown exponentially over the last three years, especially with the rise of more fintechs and digital banks and the emergence of cryptocurrencies and blockchain-based transactions. At the same time, the amount of fraud has grown as well, bolstered by the steady influx of customers using these digital platforms. Specifically in Brazil, digital fraud is on the rise: from January to September 2022, the country recorded one fraud attempt every 8 seconds, according to a report by Serasa Experian.
“No country is safe because fraud organizations are global and they go where the money is and where the softest targets are,” explained Julie Conroy, fraud expert and Head of Risk Insights & Advisory at Aite-Novarica Group. “E-commerce companies in Latin America and around the world are under considerable pressure to prevent digital fraud and protect their customers.”
CAF has played a key role in preventing much of this fraud activity. Last February, the company became the first and currently only IDtech firm in Brazil to earn a certification of conformity with the ISO/IEC 30107-3 standard, granted by iBeta Quality Assurance, a recognized biometric testing laboratory. To achieve this certification, several real-life fraud simulations were carried out -- such as hacking into user accounts using fake photos or videos — and none of them managed to bypass CAF’s systems.
“This certification was an important step for the improvement of our products and to further increase the confidence in Brazilian security technology, which is steadily carving out an important place in the world. We are very proud to fly this flag,” said Green.
Look Ahead to 2023 and Beyond
For 2023, CAF expects to expand its presence in Brazil as well as boost growth in the major international markets. This is crucial because digital identity is so important in a Web 3.0 world. Indeed, a common phrase often heard is “identity is the new currency.”
“In 2023, we will see widespread adoption of user biometrics, both online and at the point of sale,” explained Green. “As more and more businesses and services engage customers in a digital word, newer form factors to onboard and authenticate users will also emerge. Another notable trend is the decentralization of data, which makes users the real owners of their data; this data will also be used to increase security during logins and transactions.”
In Green’s view, the sports betting market will be a major focal point in 2023 given the positive view of the market by regulators in Brazil and around the world.
“The Brazilian sports betting market has had a remarkable development in the last year. Regulation and the associated promise of making Brazil a major focus for global operators brings great potential,” Green stated.
Founded in August 2019, CAF offers innovative identity verification and digital onboarding solutions to make customer, partner and supplier registrations faster, easier and more secure.
The company currently has offices in São Paulo, Rio de Janeiro, London, Toronto and Austin, as well as its headquarters in Venâncio Aires. Current customers include names such as Magalu, iFood, Mutual, Zoop and Localiza.
Press Info – GBR Comunicação
Lucas Berredo | [email protected]
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Débora Lemos | [email protected]
55 11 3047 2400