Israeli e-commerce fraud prevention developer Riskified has closed a $25 million financing round, led by Qumra Capital with participation from The Phoenix Holdings Ltd. (TASE: PHOE1;PHOE5), NTT DOCOMO Ventures, and existing investors, Genesis Partners and Entrée Capital. This brings the total funding raised by the company to $31 million. The new investment will be used to further accelerate Riskified’s 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.
The company was founded in 2013 by CEO Eido Gal and CTO Assaf Feldman and has 80 employees in Tel Aviv and Boston, most of them in R&D.
Gal said, “Riskified continues to experience unprecedented growth within the online fraud prevention industry, showing immediate improvement to retailers’ bottom line and customer experience. 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.”
He added, “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.”
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.
Qumra managing partner Erez Shachar 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.”
Qumra, which invests sums of $10-20 million in more mature startups, was established iin 2014 by Shachar and Boaz Dinte who were joined by Sivan Shamri Dahan. Over the past year they have invested in JFrog and Fiverr.
Published by Globes [online], Israel business news - www.globes-online.com - on February 10, 2016
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