Riskified Announces $165 Million Series E Funding Round Led by General Atlantic
Funding round also includes participation from Fidelity Management & Research Company, Winslow Capital Management and existing investors to support Riskified’s rapid global expansion
NEW YORK, NY – November 5, 2019 — Riskified, the payments and fraud-prevention solutions provider, announced today its Series E funding round of $165 million, led by global growth investor General Atlantic, at a valuation of more than $1 billion. The proceeds will be primarily used by Riskified to more rapidly scale its business domestically and internationally and to expand its product footprint.
Riskified’s suite of solutions operates at the intersection of merchants, banks and consumers to optimize the online and omni-channel paths-to-purchase.
The company’s AI-powered fraud-prevention solutions enable merchants to instantly and accurately distinguish legitimate customers from fraudulent ones and boost conversion rates. Unlike scoring-based solutions, Riskified’s pioneering chargeback-guarantee model aligns the company’s incentives with merchants. As a result of Riskified’s accuracy, merchants increase sales, reduce the cost of fraud and deliver a better customer experience.
Riskified’s solutions also increase bank authorization rates, protect customer accounts from misuse, and allow merchants to offer shoppers alternate payment methods.
“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 Eido Gal, CEO and Co-founder of Riskified. “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. “We are thrilled to partner with Eido and the Riskified team to reinvent the payments ecosystem and add real value for customers.”
By the numbers:
Riskified works with some of the largest and most innovative merchants in eCommerce, from omni-channel retailers to digital-first merchants. Riskified helps merchants grow their online businesses by enabling international sales, new product offerings and seamless omnichannel flows all while providing the safety merchants require and the flexibility consumers need.
Goldman Sachs & Co. LLC. served as sole placement agent in this round. Existing investors Qumra Capital, Pitango Venture Capital and Entrée Capital also participated in the round.