(Yicai Global) Dec. 27 -- Remote real-name identity authentication service provider Renzhengbao has raised CNY2 million (USD305,000) in its angel round of funding, which will go to product development, team-building and market expansion, online media reported.

Beijing Tongfang Yiheng Venture Capital Center pumped money into Renzhengbao, which it believes boasts leading technology and an innovative business model. Formed in September, the firm is a trusted cloud service platform offering real-time online validation of identity cards, passports and other such documents via biometric recognition. Customers can use the app in various scenarios after they verify their identities and undergo face scans, said company founder Yi Qingsong, adding that the app is easier to use and cheaper than traditional devices.

Renzhengbao now mainly targets corporate users, serving around 100,000, Yi added. The company will unveil a blue tooth box featuring validation of both humans and identification documents next year. Its revenue comes from annual service fees. It also offers advertising on its app. "We are assisting public security authorities to upgrade existing monitoring systems to help them crack down on crimes while ensuring the legitimate rights of the public," Yi said.

The company has linked with law enforcement and is used in hotel check-ins and for traffic violations and social security benefits. It is preparing a pre-A round of funding and plans to raise CNY10 million by selling off a 10 percent stake. Non-real-name registrations and the use of fake IDs are perennial problems for Chinese officials, businesses and ordinary people alike. Renzhengbao's success will thus likely unleash a flood of copycat competitors if past experience is any guide.