Israeli fraud prevention platform Riskified announced on Tuesday that it raised a Series E funding round of $165 million led by General Atlantic, a global growth equity investment firm, at a valuation of more than $1 billion. Fidelity Management & Research, Winslow Capital, and existing investors also participated in the round.
Founded in 2012 by CEO Eido Gal and CTO Assaf Feldman, Riskified developed an e-commerce fraud prevention platform which makes it easier for online merchants to accept high-risk credit card transactions. The company reviews, approves and guarantees transactions that merchants might otherwise decline. Its solutions also increase bank authorization rates, protect customer accounts from misuse, and allow merchants to offer shoppers alternate payment methods, the firm says.
Riskified said in a statement that the company will use the funds to scale its business domestically and internationally and to expand its product footprint.
“We’ll be able to offer even more solutions that help merchants drive revenue and deliver a better customer experience. The new clients and partners that we onboard and the new products we deliver will, in turn, increase our accuracy and improve our performance,” Gal and Feldman wrote in a blog post announcing the funding.
“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,” said Gal. “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.”
“Riskified is the rare blend of realized performance and considerable potential. The company’s innovative model has enabled it to deliver significant ROI to its customers and partners, with a clear runway ahead for strategic expansion of its geographic footprint, product offering, and consumer base,” said Tanzeen Syed, managing director in General Atlantic’s technology sector.
Riskified has raised over $220 million to date. It has offices in Tel Aviv and New York.