Tel Aviv-based fraud-prevention company Riskified announced Wednesday it has raised $25 million in new financing, or more than four times its previous fund-raising total of $6 million. The company, which was founded in 2013, analyzes credit-card transactions for online retailers to root out credit-card thieves. It said the money would go toward increasing growth. It already counts Burberry, Wish and Viagogo among its customers.
“Riskified continues to experience unprecedented growth within the online fraud-prevention industry, showing immediate improvement to retailers’ bottom line and the customer experience,” Riskified cofounder and CEO Eido Gal said. The company’s algorithm is a money maker for retailers because it is better at pinpointing fraud, he said.
Riskified approves two-thirds of transactions that retailers plan to decline, and it offers money-back guarantees on mistakes that slip through. The company says its year-over-year revenue growth reached 400 percent and that it had approved $3 billion in transactions by the end of 2015.
“Riskified’s exponential growth is indicative of the e-commerce industry’s need for a fraud-prevention platform that uncovers new revenue opportunities,” said Erez Shachar, the managing partner at Qumra Capital, which led the financing round.