Tel Aviv-based Riskified, a leading e-commerce fraud prevention startup pioneering the chargeback guarantee, said it has raised $25 million in a growth funding round led by Qumra Capital, with participation from Phoenix Insurance Co., NTT Docomo Ventures, and existing investors Genesis Partners and Entrée Capital. This brings the startup’s total funding to date, to $31 million.
Riskified’s e-commerce fraud prevention solution protects the bottom line and customer experience, guaranteeing peace of mind for hundreds of global retailers, including Burberry, Farfetch, Vestiaire Collective, Viagogo, and m-commerce companies like Wish.
Erez Shachar, managing partner at Qumra said that, “Riskified’s exponential growth is indicative of the e-commerce industry’s need for a fraud prevention platform that uncovers new revenue opportunities.”
“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, co-founder and CEO of Riskified.
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.
Riskified keeps retailers safe, guaranteeing peace of mind. Riskified’s pay-for-performance and guaranteed approval model provides a flexible, economical solution that drives revenue for retailers and enables a frictionless customer experience. Its proprietary technology uses intelligent automation and advanced fraud detection methods to accurately analyze card-not-present (CNP) orders with machine learning algorithms, behavioral analytics, and device fingerprinting. The company was founded in 2013 and is headquartered in Tel Aviv, with U.S. offices in Boston.
Riskified closed 2015 on a run rate of $3 billion in approved transaction volume, with 400% year-over-year revenue growth, says the company.
Qumra Capital is a growth fund investing in fast growth late stage start-ups. Qumra was founded in 2014 by Erez Shachar and Boaz Dinte who are Evergreen Venture Partners and Sivan Shamri Dahan who joined as a partner. Qumra is one of Israel’s growth funds leading late stage rounds in Israeli high potential advanced startups.