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
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 omnichannel 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 customers typically see increased order approval rates up to 20%
- Riskified customers typically reduce their fraud-related costs up to 50%
- Riskified has experienced hyper growth of 250% CAGR over the past five years
- ARR surpassed $100m in 2018 and is projected to grow by high double digits in 2019
- Riskified analyzes transactions from 235 countries and territories on all 7 continents
- Riskified has 420+ employees in New York and Tel Aviv and will have a new office in Shanghai before the end of 2019
Riskified works with some of the largest and most innovative merchants in eCommerce, from omnichannel 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.
Riskified helps the ecommerce industry realize its full potential by making it universally safe, accessible and economic. The world’s largest brands – from airlines to luxury fashion houses to gift card marketplaces – trust us to increase revenue, manage risk and enhance their customer experience. Merchants lose billions of dollars to legacy fraud solutions, payment failures, high-friction verification methods and more. Riskified uses powerful machine-learning algorithms to recognize legitimate customers and keep them moving toward conversion. Using Riskified, merchants can safely approve more orders, expand internationally and fulfill omnichannel flows while providing a frictionless customer experience. www.riskified.com
About General Atlantic
General Atlantic is a leading global growth equity firm providing capital and strategic support for growth companies. Established in 1980, General Atlantic combines a collaborative global approach, sector specific expertise, a long-term investment horizon and a deep understanding of growth drivers to partner with great entrepreneurs and management teams to build exceptional businesses worldwide. General Atlantic has more than 150 investment professionals based in New York, Amsterdam, Beijing, Greenwich, Hong Kong, Jakarta, London, Mexico City, Mumbai, Munich, Palo Alto, São Paulo, Shanghai, and Singapore. For more information on General Atlantic, please visit the website: www.generalatlantic.com.
About Winslow Capital
Winslow Capital is a premier growth equity investment firm, founded in 1992 on the same driving principle that continues to guide the Firm today: to deliver successful client outcomes over the long term while carefully managing risk. Winslow Capital is focused on finding the best equity opportunities in the marketplace using repeatable, time-tested processes that are firmly rooted in the fundamental research of individual companies by experienced professionals. The Firm manages approximately $21 billion (as of 9/30/19) in equity strategies including sub-advised mutual funds, separately managed accounts and a private equity vehicle for a wide variety of clients. Winslow Capital is an independent investment affiliate of Nuveen. For more information, visit www.winslowcapital.com.