Riskified, the world's leading e-commerce fraud-prevention solution, announced today that it secured an additional $33 million of growth stage funding, bringing the company's total funding to $64 million.
The most-recent round of funding was led by Israeli-based Pitango Growth, and joined by Capital One Growth Ventures, Groupe Arnault, the controlling shareholder of LVMH, and C4 Ventures. Existing investors also joined the round. Riskified plans to use the funds to accelerate market penetration, solidify its position as the market leader and serve new merchants internationally.
Riskified's industry-leading machine learning algorithm, proprietary behavioral analytics and the amplifying effect of its wide network protect merchants from fraud while maximizing their revenue. Retailers including Foot Locker, Simplehuman, Macy's and many more rely on Riskified to provide a better customer experience while lowering overhead. Riskified has reviewed hundreds of millions of transactions and approved billions of dollars of revenue for merchants across virtually all industries, including a number of Fortune 500 companies.
"We're proud to announce that we've closed series C funding with these exciting partners," said Eido Gal, cofounder and CEO of Riskified. "Their commitment further validates our technology and approach to fraud prevention. The partnership with Capital One will be a true competitive advantage as we expand into new markets."
According to research conducted by LexisNexis, the total number of fraud attempts has increased in each of the last five years and shows no signs of slowing. Staying ahead of fraud requires a significant investment of time and resources, and even the best in-house solutions only have access to orders placed on their systems. Riskified pulls from exponentially more data points to get a fuller picture of fraudsters and buyers.
"E-commerce fraud is a rapidly evolving threat to merchants everywhere. Riskified has shown a deep understanding of the fraud landscape and a keen ability to recognize fraudulent orders, helping better equip its customers to tackle this threat head-on," said Aman Sharma, Partner of Capital One Growth Ventures. "We are proud to partner with Riskified as it continues to enhance its fraud prevention technology and expand its global reach."
Aaron Mankovski, managing general partner at Pitango Growth, will be joining Riskified's board of directors. "Fraud management has reached a point where in-house solutions are not good enough to protect eCommerce sites," said Mankovski. "Network solutions like Riskified are becoming a must-have for eCommerce merchants. After thorough research, we have come to the conclusion that Riskified is the most innovative and best anti-fraud solution on the market, and we are proud to invest in its disruptive technology and exceptional team."
Investors including Qumra Capital, The Phoenix Insurance Company, Genesis Partners and C4 Ventures, featuring former Apple executive (NASDAQ: AAPL) Pascal Cagni, participated in the funding. This announcement is the latest in a number of exciting developments for Riskified. The company opened its New York City office in October of last year and has already quadrupled in size. Gal relocated from Tel Aviv in April to better work with US-based companies. And merchants using Riskified have recently been transitioned to a new, more-user-friendly and informative webapp.
"It's impossible to overstate how much better Riskified has become in the five years since we launched chargeback-guarantee fraud prevention," said Gal. "But we can't rest on our laurels. We've gotten smarter, but so too have the fraudsters. These investments will help us continue to grow, staying ahead of our competition, outsmarting eCommerce fraud and helping our merchants build successful businesses."