Data startup Privy has raised $1.5 million in seed funding from BlueYard Capital and Sequoia Capital India’s Scout Fund. The company, which is based in Bengaluru, will use the funds to grow its team and expand its product offerings. Privy was founded in 2020 by Arunabh Saxena and Aditya Bansal. The company’s platform helps businesses manage their customer data. It offers a suite of tools to help businesses clean and organize their data, as well as create and manage customer profiles.
The company had raised $500,000 in a pre-seed round from a group of angel investors in 2020. The company announced an $8.3 million seed funding round on Wednesday co-led by Sequoia Capital and BlueYard Capital.
Privy offers application programming interfaces (APIs) that developers can use to efficiently manage and integrate user-provided data. This encrypted user data is then securely transmitted with on-chain addresses to allow developers to communicate to end-users without directly handling their personal information. Privvy is especially important to projects requiring financial and compliance data, these projects are very common in decentralized finance (DeFi).
“With Privy, we want to make it easy for developers to collect and manage user data in a way that is both privacy-friendly and compliant with regulations,” said Privy co-founder and CEO Nadir Akhtar. “Our goal is to help developers focus on building great products, without having to worry about the complexities of data privacy.”
Other participants in the Q1 2022 funding round include Electric Capital, Archetype, BoxGroup and Protocol Labs. This latest investment round brings Privy closer to its goal of providing a seamless user experience in a secure on-chain environment.
Blue Yard has been an active investor in the European crypto ecosystem with investments like Bitwala, Casa, and Gnosis. “As the world becomes increasingly digital, we believe that data will become the most valuable commodity,” said BlueYard co-founder and partner Stefan Heilmann. “Privy is building the foundation for a new era of privacy-centric applications and we’re excited to support them on this journey.”
Sequoia Capital had just announced its investment in a new $600 million crypto venture fund. This is Sequoia’s first direct investment in the crypto space. The firm has also been an investor in some of the most successful companies in the space including Coinbase, Circle and Ripple. “As more of our lives and work move online, we believe that there is a fundamental need for better digital identity and authentication solutions,” said Sequoia partner Roelof Botha. “Privy is building the foundation for a new era of privacy-centric applications and we’re excited to support them on this journey.”
This latest investment from Sequoia comes as Privy is preparing to launch its new product, which aims to give users more control over their personal data. The product, which is still in beta, is expected to launch later this year.