Xapien, a leading provider of AI-driven due diligence solutions, has announced the successful completion of an £8M ($10M) Series A funding round, led by YFM Equity Partners.
This brings the company’s total funding to £14M ($17.8M). The fresh capital will be used to revolutionise how businesses conduct due diligence, allowing organisations to perform comprehensive checks in minutes rather than days.
The investment will accelerate the development of Xapien’s next-generation entity resolution engine. This includes advanced native language processing, integrations with top data suppliers, new enterprise features, and a continuous monitoring solution for perpetual Know Your Customer (KYC) compliance. Additionally, Xapien plans to expand into new sectors such as financial services and large corporate partnerships, and increase its presence in the US market.
In today’s world, it is essential for organisations to fully understand their clients, suppliers, donors, applicants, and investors, asking not just ‘can we’ but ‘should we’ engage with them. With global instability and heightened ethical expectations from consumers, comprehensive due diligence has never been more critical. The traditional third-party research industry is hampered by slow, fragmented, and manual processes, making it ripe for disruption.
Xapien’s AI-powered platform is uniquely positioned to tackle the complexities of the global enterprise governance, risk, and compliance market, currently valued at $43.65B and projected to reach $111.31B by 2032. Xapien’s rapid, fully automated background research reports enable clients to assess risks and opportunities across their third-party network swiftly, reducing dependency on slow and costly manual research and significantly enhancing the breadth of knowledge companies can build about their third parties.
Since its last investment in March 2023, Xapien has experienced remarkable growth, with annual recurring revenue increasing by over 150% and headcount doubling to 45 employees. The company has received backing from industry giant Dow Jones Risk and Compliance, leading to the launch of the industry-leading compliance tool, Integrity Check. Additionally, Xapien has secured a co-development agreement with one of the world’s largest law firms to create the first large language model AI tool for AML compliance in the legal industry, dramatically reducing onboarding times and risk exposure.
Over the past 15 months, Xapien has 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, stated, “We founded Xapien to bring transparency to business relationships, so organisations of all sizes can truly know who they are working with. This investment will accelerate our cutting-edge natural language processing and entity resolution technologies and position 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, added, “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, enhance its product, grow its team, and extend its geographical reach. We believe in the strength and scalability of Xapien’s team and look forward to accelerating their growth and success.”
