Israeli payments and fraud-prevention solutions provider Riskified today announced today the completion of its $165 million Series E funding round led by global growth investor General Atlantic at a valuation of more than $1 billion. Previous investors Qumra Capital, Pitango Venture Capital and Entrée Capital also participated in the round.
The new funds will be primarily used by Riskified to more rapidly scale its business domestically and internationally and to expand its product offering.
Riskified has developed payment and fraud prevention solutions to optimize the online purchasing for merchants, banks and consumers. The solutions allow merchants to instantly and accurately distinguish legitimate customers from fraudulent ones and boost conversion rates. Unlike scoring-based solutions, Riskified’s chargeback-guarantee model aligns the company’s incentives with merchants. As a result of Riskified’s accuracy, merchants increase sales, reduce the cost of fraud and deliver a better customer experience.
Riskified’s solutions also increase bank authorization rates, protect customer accounts from misuse, and allow merchants to offer shoppers alternate payment methods.
With offices in Tel Aviv and New York, Riskified was founded in 2012 by CEO Eido Gal and CTO Assaf Feldman. The company has 420employees and will open an office in Shanghai before the end of 2019.
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."
"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," said 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."
Published by Globes, Israel business news - en.globes.co.il - on November 5, 2019
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