Anti-Fraud Startup Riskified Is Said to Seek $200 Million in Funding
(Bloomberg) -- Riskified, an Israeli startup that provides anti-fraud services for online transactions, is seeking to raise as much as $200 million, according to people familiar with the company’s plans.
The new funds would be used to finance the expansion of the Tel Aviv-based financial technology firm, the people said, who asked for anonymity as the matter is private. At the same time, Riskified is said to consider an initial public offering, possibly by next year, one of the people said.
“Riskified does not comment on its financial plans,” a representative for the company said.
E-commerce fraud has exploded in recent years-- growing faster than the entire market of online transactions by some accounts-- and is expected to cost retailers about $130 billion globally over the next five years, according to Juniper Research.
Riskified uses machine learning to stamp out suspicious orders and counts clients such as Samsung Electronics Co. and Swarovski International Holding AG, according to its website.
Founded in 2012, Riskified has raised $64 million from investors such as Pitango Venture Capital, Qumra Capital, Genesis Partners, and the investment company of Bernard Arnault, the chairman and chief executive officer of LVMH.
Investor interest in Israeli fintech startups has steadily increased in the past 3 years. Investments in the space grew 37 percent to $856 million in 2018, according to Start-Up Nation Central, a non-profit that tracks Israel’s technology industry.
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