Feedzai, an American cloud-based financial risk management platform, announced that it has secured $200 million during a Series D investment round, valuing the startup at more than $1 billion.

The funding round was led by leading global investment firm KKR, with participation from existing investors Sapphire Ventures and Citi Ventures.

Feedzai said that the new investment will be used to accelerate the company’s global expansion, further develop its product offerings, and boost its partner strategy to strengthen its position in the market.

Feedzai’s platform is used by financial institutions, payment providers, and merchants to manage the risk of financial crime while enabling an optimised experience for end-users.

The investment comes as demand for Feedzai’s technology is accelerating alongside the rapid shift to digital banking and commerce, which has led to a significant increase in consumers becoming victims of financial crime.

In the last quarter of 2020 alone, consumers faced a 650% increase in account takeover scams, a 600% in impersonation scams, and a 250% increase in online banking fraud attacks compared to the first quarter in the same year, according to Feedzai’s data.

Feedzai reportedly has more than 800 million customers in 190 countries, with products protecting half of the U.K.’s and Canada’s populations, as well as four of the five largest banks in North America.

“Feedzai’s technology is the cornerstone of today’s commerce as consumers across the globe expect fast, reliable, seamless, and, above all, secure banking and payment experiences. The world has faster digitization requirements, and financial institutions need reliable solutions that thrive in this new digital environment in days, not months.

 

We’re thrilled to be working with KKR to bring more innovation into this space and to keep protecting our customers from an ever-evolving financial crime landscape.”

said Nuno Sebastiao, CEO and Chairman of Feedzai.

Featured image credit: feedzai