AI-based financial crime detection platform Feedzai has joined the Unicorn club, raising
$200 million at a valuation of above $1 billion.
The Series D investment round was led by KKR, with participation from existing investors Sapphire Ventures and Citi Ventures.
The core of Feedzai’s offering is its artificial intelligence and machine learning platform, which processes customer and third-party data to identify, assess, and remsolve potential threats.
Originally focused on identifying transaction fraud, Feedzai has since expand into adjacencies such as anti-money laundering and account opening.
Today, Feedzai monitors companies with more than 800 million customers in 190 countries, as well as four of the five largest banks in North America.
The investment comes as demand for Feedzai’s technology picks up alongside the rapid shift to digital banking and associated financial fraud risks. In the last quarter of 2020 alone, consumers faced a 650% increase in account takeover scams, a 600% increase in impersonation scams, and a 250% increase in online banking fraud attacks compared to the first quarter in the same year, according to Feedzai’s data.
“Feedzai’s technology is the cornerstone of today’s commerce as consumers across the globe expect fast, reliable, seamless, and, above all, secure banking and payment experiences.," says Nuno Sebastiao, CEO and chairman of Feedzai. "The world has faster digitization requirements, and financial institutions need reliable solutions that thrive in this new digital environment in days, not months."