(Bloomberg) -- Online verification company ID.me Inc. is letting employees and early investors sell shares in a deal that values the startup at $1.8 billion, according to people familiar with the situation.
The tender offer represents a step up from the $1.73 billion valuation awarded to ID.me by investors in a funding round two years ago, according to one of the people, who asked not to be identified because the information is private.
Ribbit Capital, Viking Global and CapitalG are participating in the deal, the people said. Viking, CapitalG and ID.me declined to comment. Ribbit did not immediately comment.
The uptick in valuation juxtaposes the situation for most startups, many of which are struggling to bolster their valuations. The investors are offering $67 million to purchase shares from existing shareholders, one of the people said. The offer was launched on Friday and is expected to close on Nov. 1. The company itself is not selling shares.
ID.me is also preparing for an initial public offering next year if market conditions are favorable, one of the people said. Revenue last year was $130 million, they said, with significant growth expected this year.
Employees were briefed on the tender offer Tuesday, the person said, and investors will be briefed via a webinar on Wednesday. Ribbit is a new investor in ID.me. CapitalG and Viking have been investors since 2021.
A US House committee in 2022 accused the company of misleading officials and the public about the scope of fraud during the pandemic in the US unemployment insurance system. ID.me has maintained its analysis was accurate.
©2024 Bloomberg L.P.