Funding Alert

OTPless Secures $3.5 Million in Funding to Revolutionize User Authentication

• ByStartupStory     |    May 17, 2024

OTPless, a promising customer identity and access management startup founded by Bhavik Koladiya, a co-founder of BharatPe, has successfully raised $3.5 million in a pre-Series A funding round. The investment was led by the Small Industries Development Bank of India (Sidbi), with additional participation from Venture Highway, FJ Labs, and Piper Serica.

The new capital infusion will support OTPless in expanding its global footprint and broadening its suite of services to include not only user authentication but also authorisation. This strategic move will enable the company to not just verify user identities but also manage the permissions and access levels they hold. Bhavik Koladiya emphasized the company’s commitment to enhancing the security and simplicity of user authentication. “Our vision is to revolutionize user authentication by making it simpler, faster, and more secure,” Koladiya stated. “This funding will help us scale our operations and enhance our technology to meet the growing global demand.”

With this latest funding round, OTPless has now raised a total of $6.5 million. The startup is particularly noted for its innovative approach to eliminating one-time passwords (OTPs), offering an array of alternative authentication methods such as sign-ins via popular accounts like Google, iMessage, Microsoft, and others, along with modern protocols including passkeys and network authorisation.

OTPless’s technology also features a unique silent network authentication system, developed in collaboration with telecom operators, which authenticates users seamlessly without any active input, leveraging mobile networks for a frictionless experience.

The company’s robust platform is already utilized by over 5,000 companies and 20,000 developers worldwide, handling authentication for more than 30 million users. “We are committed to providing the best possible experience for our users and partners, and this investment will enable us to continue innovating and expanding our capabilities,” added Koladiya.

Debraj Banerjee, Senior Fund Manager at Sidbi Venture Capital Limited, expressed enthusiasm about the partnership, stating, “Their innovative approach aligns with our commitment to fostering technological advancements that enhance security and user experience. We believe OTPless has the potential to become a global leader in the IAM space, and we are excited to be part of their journey.”

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