The funding will help Riskified in expanding its operations not only in the domestic arena but also internationally
Riskified, a payments and fraud-prevention services provider, has secured $165m in series E funding round led by General Atlantic with participation from Fidelity Management & Research, Winslow Capital Management and existing investors.
The present round of funding has brought Riskified valuation to more than $1bn. It is expected to support the company in rapidly scaling up its business domestically and internationally and expanding its product footprint.
Riskified CEO and co-founder Eido Gal said: “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. 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 offers a suite of solutions which operates at the intersection of merchants, banks and customers to optimise the online and omni-channel paths-to-purchase. Its fraud-prevention solutions powered by artificial intelligence (AI) enable merchants to instantly and accurately distinguish between legitimate customers and fraudulent ones, while boosting conversion rates.
Riskified’s solutions come with chargeback-guarantee, unlike regular scoring-based solutions. With its accuracy, merchants can now increase sales and reduce the cost of fraud and deliver a better customer experience.
The fintech’s solutions also increase bank authorisation rates and protect customer accounts from misuse, while allowing merchants to offer alternate payment methods for customers.
Riskified claims that its customers can typically see increased order approval by 20%, and more than 50% reduction in fraud-related costs.
Riskified analyses transactions from 235 countries and territories
The fintech claims to have seen 250% growth in the last five years. Last year, its ARR (annual recurring revenues) surpassed $100m and is projected to grow by high double digits this year. The company analyses transactions from 235 countries and territories on all seven continents.
The fintech has more than 420 employees across New York and Tel Aviv and intends to start a new office in Shanghai before this year-end.
General Atlantic Financial Services sector managing director and co-head Aaron Goldman said: “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.
“We believe that the Riskified team is strategically positioned to continue capturing this substantial market opportunity.”