Xapien secures $10M in Series A funding to drive AI-powered transformation of research industry
/EIN News/ -- 1. Xapien secures $10M in Series A funding round led by YFM Equity Partners to enhance its AI-powered due diligence platform.
2. Xapien’s AI technology revolutionises due diligence, delivering rapid, cost-effective research reports, driving a profound shift in the $44 billion compliance market.
3. Since its last funding round in March 2023, Xapien has seen a 150% increase in ARR, doubled its headcount, and secured major partnerships including with Dow Jones Risk & Compliance.
LONDON, July 17, 2024 (GLOBE NEWSWIRE) -- AI due diligence provider, Xapien, today announced the completion of its $10M Series A funding round led by YFM Equity Partners, bringing total funding to $17.8M. Xapien will use the new capital to continue to redefine how businesses understand their third parties, enabling organisations of any size to carry out comprehensive due diligence in minutes, not days. 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).” Additionally, Xapien will use the funds to continue expanding into new sectors, such as financial services and large corporate partners, and grow its footprint in the US.
Organisations today need to thoroughly understand their clients, suppliers, donors, applicants, and investors by asking not just 'can we' but 'should we' be in business with them. Conscious consumers, demanding ethical conduct and transparency from businesses, are voting with their wallets. 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 hamstrung by slow, fragmented and manual methodologies, making it ripe for disruption.
Xapien's AI-driven platform is uniquely positioned to address the complexities of the global enterprise governance, risk, and compliance market, which is valued at $43.65B today and is forecast to grow to $111.31B by 2032.1 Xapien’s rapid, 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 massively expands the knowledge companies can build up about their third parties, leading to better, faster business. Such a profound shift in the compliance market has not been seen since the release of database companies like WorldCheck in 1999.
Since its last investment in March 2023, Xapien has seen remarkable growth. Annual recurring revenue grew by over 150% and headcount doubled to 45 employees. The company received the backing from industry giant, 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 codevelopment agreement with the company to develop the world’s first large language model AI tool for AML compliance in the legal industry. The tool will reduce average onboarding times from weeks to hours and reduce risk exposure by better deploying critical human-led compliance resource.
In the past 15 months Xapien has also secured engagements with Magic Circle, Silver Circle and AmLaw 100 law firms, as well as major players in risk consulting and private wealth. In the philanthropic sector, Xapien has grown its client base by 300% over the past 18 months.
Chris Green, CEO of Xapien, said: “We founded Xapien to bring transparency to business relationships, so that organisations 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 organisations worldwide to navigate complex regulatory environments with ease and confidence, ultimately creating better business practices and stronger ethical standards.”
James Savage, Partner at YFM said: “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.”
About Xapien
Founded by deep technology experts with decades of experience in intelligence and financial crime, Xapien applies cutting edge artificial intelligence and natural language processing to deliver on-demand research for businesses seeking to truly understand their third parties.
Xapien’s SaaS platform is transforming how the world deals with counterparts. It enables anyone to know who they are in business with, a capability available until now only to organisations with significant resources.
For more information visit www.xapien.com or follow us on LinkedIn.
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1 https://www.fortunebusinessinsights.com/industry-reports/enterprise-governance-risk-and-compliance-egrc-market-101415#:~:text=KEY%20MARKET%20INSIGHTS&text=The%20global%20enterprise%20governance%2C%20risk,12.4%25%20during%20the%20forecast%20period.
AI due diligence provider, Xapien secures $10M in Series A funding round to enhance its AI-powered due diligence platform.
AI due diligence provider, Xapien, announces the completion of its $10M Series A funding round, bringing total funding to $17.8M. Xapien will use the new capital to continue to redefine how businesses understand their third parties, enabling organisations of any size to carry out comprehensive due diligence in minutes, not days.
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