Feedzai is a cloud-based risk management startup company that helps businesses in the financial sector fight financial crimes through the use of machine learning and AI technology. The business has a four-pronged approach to fighting financial crimes: prevention, detection, remediation, and compliance.
Founded in 2011, the AI business is present in 190 countries and has amassed more than 500 employees in 9 global offices. According to the AI risk management startup company, it services more than 800 million customers worldwide as 80% of the world’s Fortune 500 companies are monitored through Feedzai.
Of the 800 million global customers protected, 154 million come from the United States (US), and the AI business even protects customers of four out of five of the largest banks in North America. Additionally, Feedzai has helped detect 82% of fraudulent cards at a leading card issuer. The startup company is supported by some big names, including Citi, SoFi, ABN AMRO, and others.
Today, the AI risk management business announced it raised $200 million in a Series D financing round.
$200 Million for Feedzai
This funding round was led by global investment business KKR, with support from previous investors, Sapphire Ventures and Citi Ventures. This new funding gives the startup company a valuation of more than $1 billion.
Nuno Sebastiao, CEO and chairman of the AI startup company, said, “Feedzai was born to fight financial crime using advanced machine learning. We’re passionate about cutting-edge technology, artificial intelligence, and contributing to the end of human suffering caused by fraud and money laundering. We’re grateful for this investment and for each of you who are on this journey with us…”
This is the first investment the AI risk management business has received since it raised $50 million in a Series C round in 2017. The new investment comes at the right time when consumers faced a 650% increase in account takeover scams and a 250% increase in online banking fraud in the last quarter of 2020.
Sebastiao added, “Financial crime moves fast, 2020 and the global pandemic accelerated that even further...To stay ahead, the product and research need to be faster, and that is what we're investing in.”
The startup company plans to use the new funding to accelerate global expansion, further develop product offerings, and boost its partner strategy.
Other Industry News
Feedzai’s $200 million investment comes just one day after Startup Savant reported Jumio, an AI security software and identity verification company, raised $150 million in funding. Cybersecurity business Orca Security also announced yesterday it raised $210 million to protect companies from possible data breaches.
Market and Markets reports the global fraud detection and prevention market is expected to grow from $20.9 billion in 2020 to $38.2 billion by 2025 — a CAGR of 12.8%.
About the Author
McKenzie Carpenter is a graduate of Central Michigan University with a B.A.A. in Integrative Public Relations and French. McKenzie has previously worked for small businesses and nonprofit organizations.