Emailage, the leader in fraud prevention, today announced it has received $3.8 million in funding led by Felicis Ventures.
Since its founding in 2012, Emailage has tripled revenues year over year and helped hundreds of customers protect against various types of fraud: transaction, account opening, account takeover and loyalty. As online transactions grow globally, fraud is on the rise and companies are increasingly looking for solutions that are easy to deploy, effective and innovative.
"Email is the most unique and common ID in the online world," said Rei Carvalho, CEO of Emailage. "By using our proprietary machine learning algorithms across a vast consortium of data, we are able to stop fraudsters in real time. As our customer base grows, our solution becomes more powerful and our industry-leading fraud detection rates will continue to improve. We are excited to use this financing to grow quickly and expand our offerings."
Over the past year, Emailage has almost tripled the number of transactions analyzed and flagged over two million transactions as risky. In 2014 alone, Emailage saved customers an estimated $150 million in fraud, and 2015 is expected to far surpass that number.
"We are excited to partner with Rei and the Emailage team. In 2014, over $5 billion was lost to fraud due to account takeovers alone; as online commerce expands, fraud is a top of mind issue for most companies," said Aydin Senkut, managing director of Felicis Ventures. "Emailage's API is easy to integrate and does not require the use of sensitive customer data, enabling them to leverage data across customers and create powerful network effects for everyone."
Customers of Emailage have benefited from a faster approval rate for 60 percent of transactions and pinpointing the most risky transactions with an average hit rate of 25 percent. Some customers are detecting 50 percent or more of their total fraud just by analyzing risk based on the email. Having this information available in real time is key to not only preventing fraudulent transactions from occurring but to recognizing reputable new customers that may have otherwise been declined. As a result, Emailage customers prevent loss and retain revenue that might have been forgone had good actors been turned away.
In addition to Felicis Ventures, Double M Partners and Mucker Capital also joined this Series A funding round. Emailage works with financial services, airlines, ticketing, bitcoin, digital rights and e-commerce companies, with a client portfolio of Fortune 500 companies. With offices in U.S, U.K. and Brazil, Emailage is already in multiple international markets and will use this funding to continue its global expansion.