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Password and ID startup Dashlane, now with 5m users, raises $22.5M led by TransUnion

TechCrunch TechCrunch 25/05/2016 Ingrid Lunden

Dashlane, the New York startup that provides a platform for users to manage their passwords and online identity, has raised $22.5 million in funding and picked up a key strategic investor and partner in the process. TransUnion, a credit monitoring and ID protection company, led the Series C round and will use the deal to develop services with Dashlane for each others customers.

Others in the round included existing investors Rho Ventures, FirstMark Capital and Bessemer Venture Partners. Dashlane has raised $52.5 million to date.

The market for identity protection and password protection has perhaps never been stronger than it is today. There is a growing wave of mainstream services that you consume in the cloud that need you to authenticate who you are. But the instances of malicious hackers uncovering and using your credentials for nefarious purposes seem to be rising at an alarming rate.

Those two forces have been a big boost for Dashlane’s business. Today the company says it has more than 5 million consumers in over 150 countries, and it has enabled $6 billion in e-commerce transactions to date. As a point of comparison, two yeas ago when we covered the company’s previous round of funding, it had only 2 million users and helped process $1 billion in transactions. (Incidentally, the faster growth in transactions is also a mark of just how big a role online services plays in our lives today.)

“Today marks an important milestone in our path forward as an identity management company,” said Emmanuel Schalit, the CEO of Dashlane, who originally launched the company in Paris in 2012 after an extended period in stealth. “Our mission has always been to make identity and payments simple and secure everywhere. This new round of funding, combined with the strategic relationship with TransUnion, will strengthen our ability to achieve this vision by giving us the capital to accelerate our roadmap, as well as the ability to further integrate new powerful services for our users.”

TransUnion is one of the very big players in this space, coming from a different angle: it works to help you manage your credit profile, and also works with large sites to protect their transactions. It’s been progressively making more moves to shift some of its business to focus on protection for individuals, and so this is where its interest and investment in Dashlane fits.

It’s not TransUnion’s first move to tap into the startup world to build out its business: the company acquired Ireland’s TrustEv last year for $44 million to expand its e-commerce fraud protection business.

As for what the two plan to do together, the companies are not yet releasing specific services but they will represent breaking new ground for both of them. “These integrated services will focus on credit monitoring, identity and fraud protection, credit information and breaches,” notes a statement. “TransUnion will also help Dashlane expand its distribution through TransUnion’s multiple partner channels in the U.S. and globally.” John Danaher, president of TransUnion Consumer Interactive, will also join Dashlane’s board.

“We are impressed by Dashlane’s capabilities from a product and technology standpoint,” said Danaher in a statement. “Dashlane’s mission is straightforward, and the company is uniquely positioned to benefit from the ever-increasing need for simple, secure digital identity solutions. We feel TransUnion, with its vast array of credit and identity protection services and its global consumer reach, can help accelerate Dashlane’s growth even further.”

Dashlane offers products for consumers, but it’s also building out its B2B business, another way that it fits with TransUnion’s focus. Most recently, it inked a deal with Citigroup-owned Banamex in Mexico and says it has deals in the works with other financial institutions.

Carl Pascarella, former CEO of Visa Inc. (NYSE: V), has also joined Dashlane’s board with this round, as an independent director.  “Dashlane’s ability to facilitate payments and help reduce fraud is uniquely relevant for financial institutions,” said Pascarella.  “I am excited to have an opportunity to lend my experience to help the team at Dashlane accomplish their vision for secure information and online payments.”


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