Alloy raises $40mn in Series B funding led by Canapi Ventures
By Pavithra R
New York-based Alloy, a service provider helping reduce false positives during the KYC process has announced that the company has raised $40 million in Series B funding led by Canapi Ventures.
The funding round saw participation from Felicis Ventures and Avid Ventures, as well as existing investors Bessemer Ventures, Primary Venture Partners, and Eniac Ventures. Alloy has also announced the joining of Canapi Ventures partner Walker Forehand to its board of directors.
Alloy is on a mission to help customers deploy safe and seamless digital customer experiences. The firm helps top banks and FinTechs make better decisions using a single API and dashboard to manage KYC/AML, fraud, and more. Alloy makes it easy for financial service companies to quickly and safely onboard and manage more customers by automating the vast majority of decisions, mitigating fraud and high-cost financial risk, and reducing the burden on the back office and manual review queues.
The firm is planning to use the investment to continue to support its growing customer base while expanding product offerings and scaling marketing, sales and customer efforts. The company is planning to bring new products to market-related to transaction and credit decisioning as well as document verification.
“The pandemic accelerated a seismic shift in the way consumers and businesses conduct financial services online. We’re operating at a time where digital channels, online account activity, and cybercrime have exploded. New technology and approaches are needed to help financial institutions scale digitally while managing these risks in an operationally efficient way. We are thrilled to put our support behind the Alloy team and its technology to help banks and fintechs solve digital identity challenges,” said Walker Forehand.
FinTechs and banks are turning to Alloy to automate their increasingly complex risk decisions. Last year, Alloy has seen significant growth in recurring revenue and its customer base has nearly doubled, servicing over 90 customers including Evolve Bank & Trust, Ally Bank, and Brex. The fully automated Alloy platform delivers reduction in fraud, increase in approval rates for good customers, and 95% reduction in manual reviews.
Other investors that participated in the funding include Addie Lerner, founder and managing partner at Avid Ventures, and Victoria Treyger, general partner and managing director at Felicis Ventures, who led the firm’s fintech investments in Hippo and SentiLink.
“We’re honored to have the Canapi team’s wealth of knowledge as both investor and board member. Our investors have extensive experience scaling fintech companies and developing industry-changing SaaS platforms. Their investment is a further validation of our team and mission to help financial companies deploy safe and seamless digital customer experiences. We couldn’t ask for better partners to enter the next phase of growth with,” said co-founder and CEO Tommy Nicholas.
Also read: Cybersecurity in Financial Services Report 2020.
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