Riskified, a US-based e-commerce fraud detection software developer backed by mobile network operator NTT Docomo, insurance firm Phoenix and financial services firm Capital One, filed for an initial public offering yesterday.
The offering is set to take place on the New York Stock Exchange and there is a $100m placeholder target listed in the draft prospectus.
Founded in 2013, Riskified has developed an online risk management platform that leverages artificial intelligence technology to automatically approve or deny e-commerce transactions, while preventing fraudulent attempts.
The company’s revenue increased from $131m in 2019 to $170m in the following year, and it incurred net losses of $14.2m and $11.3m in 2019 and 2020 respectively.
Riskified was valued at more than $1bn in a $165m series E round led by General Atlantic in March 2021 that included financial services and investment group Fidelity, Qumra Capital, Pitango Venture Capital and Entrée Capital. It has yet to reveal any details about its series D funding.
Pitango Venture Capital led the company’s $33m series C round, in 2017, which was backed by Capital One Growth Ventures, the corporate venturing subsidiary of Capital One, as well as insurer Phoenix Insurance.
The round increased the company’s total funding at that point to $64m and was filled out by Groupe Arnault, Qumra Capital, Genesis Partners, C4 Ventures and Pascal Cagni.
Riskified had received $25m in a series B round in 2016 led by Qumra that also featured Phoenix Insurance, Genesis Partners, Entrée Capital and NTT Docomo Ventures, the corporate venture capital unit for NTT Docomo.
The company’s early investors include Genesis Partners, Founder Collective, Entrée Capital, Formation 8, Accelerator Group and T5 Capital. It lists Genesis Partners, Qumra Capital, Pitango Venture Capital, Fidelity and General Atlantic as its largest shareholders without disclosing the size of their stakes.
Goldman Sachs, JP Morgan Securities and Credit Suisse Securities are lead book-running managers for the offering while the joint bookrunners are Barclays Capital, KeyBanc Capital Markets, Piper Sandler, Truist Securities and William Blair.