Riskified eyes expansion after $165 million funding round

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E-commerce and multi-channel fraud prevention software provider Riskified has received $165 million in a Series E funding round led by global growth investor General Atlantic.

New York-based Riskified says the investment would help the company expand its AI-powered fraud prevention system domestically and internationally.

“Riskified began as a new and unproven approach to fraud prevention and payments," Eido Gal, CEO and Co-founder of Riskified, said in a Tuesday press release. "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."

Riskified's retail clients include Finish Line, Prada and Ring. In addition to General Atlantic, other investors included Fidelity Management & Research Company, Winslow Capital Management, as well as existing investors Qumra Capital, Pitango Venture Capital and Entrée Capital. Goldman Sachs served as the sole placement agent in this round.

“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,” Aaron Goldman, managing director and co-head of General Atlantic’s Financial Services sector, said in the release. “We believe that the Riskified team is strategically positioned to continue capturing this substantial market opportunity.”

Riskified says it analyzes transactions from 235 countries and territories on all seven continents. The company has more than 420 employees in New York and Tel Aviv and plans to open a new office in Shanghai before the end of 2019.

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Venture funding Artificial intelligence Fraud prevention Fraud detection