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In this article, Axis Negocios reports that Incode Technologies has acquired MetaMap to expand its presence in Latin America and access new markets in Africa, strengthening its position in the identity authentication market.
The merger significantly increases their customer base and leverages the technological and geographical synergies between both companies.
Read the transcription of this article, published by Axis Negocios on June 11, 2024.
Incode multiplies customers, reinforces presence with acquisition of competitor MetaMap
By Francisco Delgado
Incode Technologies, a security firm focused on identity authentication, announced the acquisition of its competitor MetaMap, intending to create synergies and strengthen its market position.
The union of both companies, based in the technological hub of Silicon Valley in California, enhances Incode’s presence in Latin America, particularly in Argentina, Brazil, Chile, Colombia, and Mexico, as reported by the company in a statement.
“We see a very high complementarity in both companies, from both a technological perspective and a geographical point of view, but also in the somewhat more specific area of business model,” said Íñigo Castillo, General Manager for Mexico and Latin America of the tech firm, in an interview about the operation.”
MetaMap, which was acquired after obtaining all the necessary regulatory approvals in the United States for an undisclosed amount, also gives Incode access to markets it had not developed, such as the African market.
Following the purchase, Incode grew from just under 200 customers to more than a thousand across over 100 markets.
With its first acquisition since it was founded in 2015 by Mexican Ricardo Amper, the company seeks to defend its position in a rapidly growing market.
The identity verification market is expected to reach $13.2 billion in 2024 and up to $23.5 billion by 2029, representing an average annual growth of 12.6%, according to consulting firm Mordor Intelligence.
“Integrating MetaMap’s innovative approach to mapping, its scalable growth engine, and its talent will strengthen our position as leaders in the global market,” wrote Ricardo Amper, today’s CEO of Incode, in the statement.”
However, the exponential growth that came with the purchase does not mean that Incode will abandon its previous plans, which aimed to double its clients in a couple of years and consolidate itself in Latin America and the United States.
The company primarily serves the market of large clients, ranging from the American financial Citigroup to the Chilean shipping startup Rappi, to the Chamber of Deputies of Mexico or the Mexican Football Federation.
MetaMap has a broader universe of clients as its identification technology is less complex—though no less secure—termed low touch by its new owner, making it easier to market to smaller companies and startups. Among its clients are the fintechs Creditas, Cuenca, Toka, Kueski, Yo te Presto, and Clara.
Incode plans to continue strengthening both paths.
“Also comes all the benefit of gathering signals, say, quite varied, at the end of the day between the two companies they verified more than 600 million identities last year and all that data will help a lot in the continuous development of our artificial intelligence and machine learning engines,” added Castillo.
For now, the tech firm, which expects to reach profitability this year, declined to make public goals as a joint company and limited itself to anticipating that it will continue to grow rapidly.
This growth, outlined by Incode, will not require new rounds of capitalization in the short term. Moreover, the company does not see its arrival on the public debt or equity markets coming soon.
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