Riskified, a leading e-commerce fraud prevention company pioneering the chargeback guarantee, announced today that it has secured $25 million in a growth round of financing, led by Qumra Capital with participation from The Phoenix Insurance Company, NTT DOCOMO Ventures, and existing investors, Genesis Partners and Entrée Capital. This brings the company’s total funding to $31 million. The new investment will be used to further accelerate Riskified’s exceptional growth and customer success of online fraud prevention for global retailers including Burberry, Wish and Viagogo.
Riskified’s flexible e-commerce fraud prevention solution protects the bottom line and customer experience, guaranteeing peace of mind for hundreds of global retailers. Using its proprietary behavioral analytics technology and machine learning, the company takes a dynamic, adaptive approach to stay ahead of the constantly changing fraud landscape. Riskified closed 2015 on a run rate of $3 billion in approved transaction volume, with 400% year-over-year revenue growth.
Erez Shachar, managing partner at Qumra said, “Riskified’s exponential growth is indicative of the e-commerce industry’s need for a fraud prevention platform that uncovers new revenue opportunities. Leveraging its experienced team, proven technology, and unwavering focus on their global retail customers, we’re confident Riskified is positioned to build the world’s best fraud prevention solution.”
“Riskified continues to experience unprecedented growth within the online fraud prevention industry, showing immediate improvement to retailers’ bottom line and customer experience,” said Eido Gal, cofounder and CEO of Riskified. “It’s a win-win for global retailers. They’re recouping millions in revenue from fraud loss while gaining customers that would have otherwise been rejected. Not only do we approve 66% of orders retailers plan to decline, but we also guarantee every order we approve to provide assurance and peace of mind.”
According to Javelin Strategy & Research, falsely declining legitimate orders due to suspected fraud costs US retailers $109 billion more than actual fraud losses. Millennials and high-income shoppers are the most affected by falsely declined orders, with 74% limiting shopping or entirely abandoning the retailer. Global retailers relying on Riskified to recoup lost revenue and customers include Burberry, Farfetch, Vestiaire Collective, Viagogo, and m-commerce companies like Wish.
Gal said, “We founded Riskified with the retailer in mind, and have grown adept at servicing the needs global retailers have as they expand their e-commerce and m-commerce operations to provide more personalization to consumers. Our adoption rates continue to validate the incredible global demand for a flexible fraud prevention solution for enterprise brands. We look forward to expanding on our customer success and continuing our rapid pace in the future.”