AI due diligence provider, Xapien, today announced the completion of its £8m Series A funding round led by YFM Equity Partners, bringing total funding to £14m. 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.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.
