Feedzai, a California-based data science company, has recently raised $200 million in a funding round led by an investor KKR, leading to the total valuation of the company at above $1 billion. This latest funding round includes participation from other existing investors such as Citi Ventures and Sapphire Ventures.
Feedzai is known for developing AI (artificial intelligence) and ML (machine learning) technologies that help banks and other financial institutions spot, prevent, and remediate money laundering, payments fraud, and other illicit activities. The data science company’s engineering as well as product operations are currently based in Portugal. It is planning to use the recently secured funds in expanding its product range and footprint across the globe.
In the wake of the COVID-19 outbreak, the adoption of digital payments and banking has been increasing at a considerable pace worldwide. This trend has resulted in the rapid shift of businesses and consumers towards conducting activities online, thereby surging the instances of online financial crimes. For the record, consumers had encountered a 650% hike in account takeover scams, with a 250% increase in digital banking fraud attacks in the last quarter of 2020 as compared to a year earlier.
The clients of Feedzai include large-sized companies such as Banco Santander, Fiserv Inc, and Citigroup Inc, as well as well-known fin-techs including SoFi. The escalating rate of online attacks has influenced several banks to look for innovative technology that can automate the business process and prevent online crime.
As per the statement made by Feedzai’s Chairman & Chief Executive Officer, Nuno Sebastiao, there have been accelerating impacts of financial crimes being witnessed by businesses across the globe during the COVID-19 pandemic. With an aim to enhance operations amid this crisis, the company is making significant investments in its products and R&D activities.