Alicante-based technology firm Facephi has explored the possibility of selling a controlling stake, a move the company disclosed to managers at BME Growth, the SME market where it is listed. The timeline for such a deal would be set by Facephi’s leadership as negotiations progress, and no binding agreement has yet been reached.
Management has signaled a continued emphasis on growth, aiming to expand the reach of its digital identity solutions to more markets after already launching in 25 countries. When speaking last March, Facephi’s leadership indicated plans to pursue a majority stake sale to accelerate expansion and scale operations.
Javier Mir, the company’s president, announced the intention to monetize part of the equity and appointed GP Bullhound as market advisors to identify suitable candidates. External consulting services were also engaged through Gómez Acebo and Pombo. The initial mandate was for six months, but Facephi later announced a three-month extension; that extension expired last Friday without a deal being concluded. In its communication with BME Growth, the company explained that after pursuing a potential partner, the process was paused and would not proceed under the current terms.
Facephi’s facilities are located in the Panoramis business center in Alicante, a detail noted in a recent company update. The leadership team remains focused on the path ahead, reiterating a commitment to growth over the next several years. One goal behind inviting a strategic partner was to secure the resources necessary to pursue acquisitions that could speed up expansion and strengthen competitive positioning in key regions.
The company has continued to receive backing from Swiss investment firm Nice & Green. In May, the firm renewed its financing agreement, confirming a liquidity injection of €20 million to support Facephi’s business plan and ongoing operations.
Results
The technology company, which develops facial recognition software and other biometric capabilities to verify identities in digital environments, reported robust first-half results for 2023. Revenue reached €9.7 million, up 24% year over year according to the latest balances filed with the market regulator. While the top line grew, there were notes of higher operating expenses tied to investments in personnel and expansion, which contributed to a net performance gap compared with the previous year.
Despite these costs, the period highlighted several strategic milestones. Facephi expanded into new markets, including engagements in the United Arab Emirates and Saudi Arabia via fintech partnerships with Qashio, and in the United States through an agreement with Orokii. These moves illustrate a continued push to diversify geographic exposure and to align product capabilities with regional demand for secure digital identity solutions, particularly in regulated or high-growth sectors.
Industry observers note that the company’s growth plan hinges on executing its market-entry strategy while maintaining strong governance and capital discipline. The balance sheet supports continued investment in product development, regulatory compliance, and go-to-market efforts across multiple jurisdictions. As Facephi navigates potential partnerships and strategic acquisitions, stakeholders are watching how the company translates its technology leadership into meaningful scale and sustainable profitability.
Market participants and potential investors are advised to monitor updates from Facephi and its representatives as negotiations evolve. The company remains focused on building a robust ecosystem around its identity solutions, with an emphasis on security, privacy, and interoperability across diverse digital ecosystems. The coming quarters are expected to reveal how well the growth ambitions align with financial discipline and the evolving demand for biometric identity solutions in North America and the broader global market. This strategic corridor underlines the potential for Facephi to accelerate its expansion through targeted partnerships and selective acquisitions, as the company positions itself to capture new growth opportunities in a rapidly digitizing world.