PrivyID's Pre-Series A Funding Is the First Step to Establish a Bigger Debut

Digital signature developer startup PrivateID announced the acquisition of pre-series A funding led by MDI Ventures and Mandiri Capital Indonesia. Gunung Sewu and Mahanusa Capital are also involved in this funding.

The amount of funding obtained is not stated. However, according to PrivyID CEO Marshall Pribadi, the next funding (Series A) early next year will soon follow with a significant value.

"This [Pre-Series A] funding is not aimed at massive expansion, but is optimized to build in first," Marshall said.

Specifically, this time the funding will be focused PrivateID for hardware and software infrastructure spending. According to Marshall, at least part of the funding was allocated for security devices such as HSM (Hardware Security Module) and Transparent Encryption System. The rest will be used to procure new office space in Jakarta and Yogyakarta, as well as recruiting the team security and technology.

"Synergy is our main thesis. We have been in partnership with PrivyID through the Indigo program since 2015. Since then PrivyID has worked with various projects for the Telkom Group. We will continue to work closely with leading startups in various verticals to catalyze growth by sourcing our resources and network. In short, we bring scale through our customer base and resources to deliver critical value to companies like PrivyID," said MDI Ventures CEO Nicko Widjaja.

In the Telkom Group, it is stated that PrivyID technology has been used in IndiHome and T-Money.

"Our users are greatly helped by the time and cost savings from eliminating paper and courier delivery to signing documents. Signing can be done at smartphone nor PC anywhere. In addition, we are also in the process of obtaining ISO 21188 on Public Key Infrastructure for Financial Services," continued Marshall.

PrivateID Private Marshall didirikan and Guritno Adisaputro, previously received seed funding from the Indigo Incubator program made by Telkom. His actions managed to record at least 300.000 users with corporate partners reaching 31 entities. Including strengthening cooperation networks with banking and non-banking institutions to verify users. In terms of technology, PrivyID has now also provided applications on the Android and iOS platforms for its users.

"We want to make pure digital offerings for industry fintech, where users who already have accounts at financial institutions that have become our partners and have gone through the Customer Due Diligence process in accordance with OJK Regulations concerning Anti-Money Laundering and Prevention of Terrorist Financing. There is no need to go through that process again when you want to become a customer of another institution," said Marshall.

In simple terms, what PrivyID offers to consumers is an accountable digital identity verification technology, with one national identity number, one digital identity.

With this digital identity, users can provide consent in the form of a digital signature when using various types of services (especially in financial institutions). It is known that the legality of digital signatures has been regulated in Article 52 of Law PP 82/2012 in Indonesia.

"PrivyID aims to build the foundation of a healthy electronic transaction ecosystem, namely by providing a trusted identity in cyberspace and legally binding digital signatures. I believe what we are doing is in line with the government's ambition to accelerate the growth of the digital economy," said Marshall.

Because it is used in crucial sectors, special standards are also followed, one of which refers to the rules issued by the Financial Services Authority (OJK). Including from the technology side, PrivyID digital signatures are supported by digital certificates using asymmetric cryptography and public key infrastructure to facilitate the signing verification process and any changes made to signed documents can be identified.

"PrivyID's business model can increase the efficiency of corporate business because it provides solutions for companies to send and receive documents with electronic signatures online, so that both parties do not have to be in the same place or even require courier services," said Mandiri Capital President Director Eddi Danusaputro as PrivyID's strategic partner.