AI due diligence provider Xapien announced the completion of its £8 million ($10 million) Series A funding round, led by YFM Equity Partners. This brings the total funding to £14 million ($17.8 million).
Xapien will use the new funding to redefine how businesses understand their third parties, enabling organizations of any size to carry out comprehensive due diligence in minutes, not days. And it will do so by accelerating the development of its next-generation entity resolution engine, which includes advanced native language processing, integrations with top data suppliers, new enterprise features, and a continuous monitoring solution for perpetual Know Your Customer (KYC). Xapien will use the funding to expand into new sectors, such as financial services and large corporate partners, and grow its footprint in the US.
Global instability – from geopolitical tensions to rapidly changing sanctions – increases the need for comprehensive due diligence. Against this backdrop of an ever-expanding risk landscape, the third-party research industry is hampered by slow, fragmented, and manual methodologies, making it ripe for disruption.
Xapien’s rapid and fully automated background research reports help clients assess risks and opportunities across their third-party network in minutes. This reduces their reliance on slow and costly manual research, whether in-house or via risk consulting advisors and expands the knowledge companies can build up about their third parties, leading to better, faster business.
Since its last funding in March 2023, Xapien has seen remarkable growth. Annual recurring revenue grew by over 150% and headcount doubled to 45 employees. And the company received the backing from Dow Jones Risk and Compliance, which saw the launch of an industry leading compliance tool Integrity Check. Since then, one of the world’s largest law firms has launched a co-development agreement with the company to develop the world’s first large language model AI tool for AML compliance in the legal industry. This tool will reduce average onboarding times from weeks to hours and reduce risk exposure by better deploying critical human-led compliance resource.
KEY QUOTES:
“We founded Xapien to bring transparency to business relationships so that organizations of all sizes can truly know who they are working with. This investment will not only accelerate our cutting-edge natural language processing and entity resolution technologies but also positions us at the forefront of a fundamental shift in compliance. We are transforming due diligence from a time-consuming, manual process into an efficient, precise, and comprehensive solution. Xapien is setting new standards in compliance, helping organizations worldwide to navigate complex regulatory environments with ease and confidence, ultimately creating better business practices and stronger ethical standards.
– Chris Green, CEO of Xapien
“Xapien’s innovative technology is gaining impressive commercial traction in an exciting market, and it has already proven its value in existing sectors. With our support, Xapien is poised to expand into new areas, enhancing its product, growing its team, and extending its geographical reach. We believe in the strength and scalability of Xapien’s team and look forward to accelerating their growth and success.”
– James Savage, Partner at YFM
