Analysis · Enterprise Software & IT

IDfy wins government consent management bid under new data law

By Startup Enthusiast · 18 April 2026

What they do

IDfy provides identity verification and privacy solutions for businesses

The company won a government competition for consent management systems under the DPDPA 2023 rules notified in November 2025

This win positions IDfy to capitalize on a compliance market expected to reach ₹10,000 Cr over three years

India notified the DPDPA 2023 rules on November 14, 2025, starting a phased rollout.
IDfy won an Indian government competition for consent management systems under this new law in March 2026.
The Data Protection Board of India is enforcing these comprehensive data protection rules across sectors.
EY reports that awareness of the DPDP Act is growing but implementation maturity remains uneven.
IDfy has surpassed the ₹200 Cr revenue mark for FY26 with operations at ₹188.5 Cr in FY25.

The DPDPA 2023 aligns with the spirit of the EU GDPR to protect user data.
A compliance-as-a-service market is expected to unlock ₹10,000 Cr ($1.2 Bn) over the next three years.
India's current privacy market is estimated at $1–1.5 Bn with potential to reach $3–4 Bn.
Consolidation into integrated solutions is likely as legal and cybersecurity components address distinct needs.

IDfy was founded in 2011 to address India's trust deficit in manual verification processes.
The company operates on three pillars: onboarding, risk assessment, and privacy management.
Privy is IDfy's dedicated privacy and data governance platform built for regulatory compliance.
Privy focuses 80% on data governance and 20% on consent management features.
Privy currently contributes approximately 10% of IDfy's total business revenue.
IDfy targets surpassing the ₹200 Cr revenue milestone for the fiscal year 2026.

IDfy aims to expand its Privy platform as regulatory requirements become mandatory.
The company will compete against rivals like Perfios and Razorpay in the consent management space.