US-based e-commerce fraud prevention software developer Riskified raised $33m on Tuesday in a series C round featuring Capital One Growth Ventures, the strategic investment vehicle for financial services provider Capital One.
VC firm Pitango Venture Capital led the round through its $250m growth fund, investing alongside insurer Phoenix Insurance Company, Groupe Arnault, Qumra Capital, Genesis Partners, C4 Ventures and private investor Pascal Cagni.
Riskified has built a software platform that uses machine learning algorithms and behavioural analytics to prevent e-commerce fraud for online retailers. It will use the funding to penetrate further into the market and expand internationally.
Eido Gal, co-founder and chief executive of Riskified, said: “It is impossible to overstate how much better Riskified has become in the five years since we launched chargeback-guarantee fraud prevention.
“But we cannot rest on our laurels. We have gotten smarter, but so too have the fraudsters. These investments will help us continue to grow, staying ahead of our competition, outsmarting e-commerce fraud and helping our merchants build successful businesses.”
The round increased Riskified’s overall funding to $64m, and comes after a $25m series B round in February 2016 that was led by Qumra and backed by Phoenix Insurance, Genesis Partners, NTT Docomo Ventures, which invests on behalf of mobile network operator NTT Docomo, and Entrée Capital.