Payments and fraud-prevention company Riskified has announced today its Series E funding round of $165 million, pushing its value beyond $1 billion.
The funding round was led by international equity firm General Atlantic, with Goldman Sachs serving as sole placement agent.
Riskified provides an AI-powered fraud prevention service enabling merchants to recognise fraudulent customers, and counts LastMinute.com, Gymshark and Megabus among its clients.
According to Riskified, clients reduce fraud-related costs by a third and see approval rates increase by 20%.
The Israeli startup works as an intermediary between merchants, banks and shoppers to minimise friction at the point of sale.
Aaron Goldman, managing director of General Atlantic's financial services sector, believes that Riskified provides "material improvements" compared to legacy fraud-prevention services and the payment failures and high-verification methods that can come with them.
Founded in 2012, Riskified had previously raised $64 million from investors such as Pitango Venture Capital and Qumra Capital, who both also participated in this round.
“Riskified began as a new and unproven approach to fraud prevention and payments," says CEO, Eido Gal.
"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.”
The investment will be used to expand Riskified's footprint in the payments and fraud-prevention space and finance a new office in Shanghai, to go with its existing premises in New York and Tel Aviv.