Payments and fraud-prevention solutions provider Riskified has secured $165 million in a Series E funding round.
Led by global growth investor General Atlantic, the money raised will be used to expand the company’s business domestically and internationally as well as its product offerings.
“Riskified began as a new and unproven approach to fraud prevention and payments. Achieving success required merchants to believe in our vision and partner with us,” said Eido Gal, CEO and co-founder of Riskified.
“Today’s announcement is a testament to those partnerships and the leadership position we attained in this important market,”
“These funds will allow us to continue to develop innovative solutions that help move commerce forward.”
Riskified’s suite of solutions operates at the intersection of merchants, banks and consumers aiming to optimise the online and omni-channel paths-to-purchase.
It features AI-powered fraud-prevention solutions and a “pioneering” chargeback-guarantee model all striving to increase accuracy, merchant sales and reduce fraud.
Riskified’s solutions also increase bank authorisation rates, protect customer accounts from misuse, and allow merchants to offer shoppers alternate payment methods.
“Our work in the payments space has shown us that Riskified’s machine learning-based approach provides material improvements over legacy fraud and risk management solutions,” noted Aaron Goldman, managing director and co-head of General Atlantic’s Financial Services sector.
“We believe that the Riskified team is strategically positioned to continue capturing this substantial market opportunity.”
Riskified has experienced “hyper growth” of 250% compound annual growth rate (CAGR) over the past five years and its annual recurring revenue (ARR) surpassed $100m in 2018.
“Riskified is the rare blend of realized performance and considerable potential. The company’s innovative model has enabled it to deliver significant ROI to its customers and partners, with a clear runway ahead for strategic expansion of its geographic footprint, product offering, and consumer base,” added Tanzeen Syed, managing director in General Atlantic’s Technology sector.
“We are thrilled to partner with Eido and the Riskified team to reinvent the payments ecosystem and add real value for customers.”
