UK-based Xapien secures €9.52M to enhance its AI-powered due diligence platform

London-based Xapien, an AI due diligence provider, announced that it has completed a £8M (nearly €9.52M) Series A funding round led by YFM Equity Partners, bringing its total funding to £14M (nearly €16.63M).

James Savage, Partner at YFM, says, “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, enhancing its product, growing its team, and extending its geographical reach. We believe in the strength and scalability of Xapien’s team and look forward to accelerating their growth and success.”

Automating online research

Xapien’s AI-driven platform addresses the complexities of the global enterprise governance, risk, and compliance market. 

Founded by experts in intelligence and financial crime, Xapien uses AI and natural language processing to provide on-demand research. 

Its automated background reports allow clients to quickly assess third-party risks and opportunities, reducing reliance on costly manual research and enabling faster, more informed business decisions. 

The platform aims to make comprehensive due diligence accessible to all organizations, not just those with significant resources.

Since its last investment in March 2023, Xapien claims to have experienced significant growth, with annual recurring revenue increasing by over 150 per cent and its headcount doubling to 45 employees. 

Backed by Dow Jones Risk and Compliance, Xapien launched the Integrity Check compliance tool. Additionally, the company entered a co-development agreement with a major law firm to create the world’s first large language model AI tool for AML compliance in the legal industry, which will cut onboarding times from weeks to hours and enhance risk management by optimising human-led compliance resources.

In the past 15 months, Xapien has secured engagements with Magic Circle, Silver Circle, and AmLaw 100 law firms, along with major players in risk consulting and private wealth.

Additionally, the company has expanded its client base in the philanthropic sector by 300 per cent over the past 18 months.

Capital utilisation

The funds will be used to enhance Xapien’s capabilities, allowing businesses to conduct comprehensive due diligence in minutes. This includes accelerating the development of its next-gen entity resolution engine with advanced native language processing, integrations with top data suppliers, new enterprise features, and a continuous monitoring solution for “perpetual Know Your Customer (KYC)”. 

Xapien also plans to expand into new sectors such as financial services and large corporate partners, and increase its presence in the US.

Chris Green, CEO of Xapien, says, “We founded Xapien to bring transparency to business relationships, so that organisations of all sizes can truly know who they are working with.”

“This investment will not only accelerate our cutting-edge natural language processing and entity resolution technologies but also positions 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.”