On the heels of the company’s rapid global expansion, Lightspeed Venture Partners and Avenir deepened their investment in the Identity Decisioning Platform
Alloy, the leading Identity Decisioning Platform for banks and fintech companies, announced that it raised an additional $52 million led by Lightspeed Venture Partners and Avenir Growth with participation from existing investors Canapi Ventures, Bessemer Venture Partners, Avid Ventures, and Felicis Ventures, bringing the company’s valuation to $1.55 billion. The funding will help the company as it accelerates its growth to address the global demand for fraud prevention tools.
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Alloy enables clients to pull in customer information, traditional credit bureau data, and other alternative data through a single point of integration, providing a complete picture of their customer. Earlier this month, the company announced its global expansion into 40 countries across North America, EMEA, LATAM, and APAC.
“We feel incredibly lucky to have partners that not only understand the impact of our investments into our platform and in expanding globally but also proactively come to the table to support them,” said Tommy Nicholas, co-founder and CEO of Alloy. “With this newest investment we’ll be able to accelerate our growth and better address the global fraud challenges that companies are facing.”
Founded in 2015, Alloy has grown to meet the rising demand for identity tools that help companies fight fraud and stay compliant while onboarding new customers in the US and abroad. Over 300 companies use Alloy’s API-based platform to connect to more than 160 data sources, automate identity decisions during account origination, and monitor them on an ongoing basis. Alloy has helped some of the most innovative banks and fastest growing fintech companies grow and scale operations by allowing them to find more good customers and bring them into their products without increasing their risk of fraud.
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“With fraud rates on the rise, Alloy plays a critical role in the financial ecosystem by bringing their expertise and platform to both emerging fintech companies and established banks,” said Justin Overdorff, Partner at Lightspeed Venture Partners. “Fraud is inevitable and one of the biggest risks for new financial technology; leveraging Alloy’s infrastructure gives companies a leg up fighting fraud by giving a unique holistic view of each customer from the day they onboard and throughout their entire life cycle as a customer.”
Over the past 12 months, Alloy has seen revenue more than double. The company currently serves banking and fintech companies including Ally Bank, HMBradley, Gemini, Ramp and Evolve Bank & Trust, processing over a million decisions daily.
“What makes Alloy unique is that the company hasn’t just built a powerful platform; its team consistently delivers expert guidance to help companies, big and small, navigate risk as well as regulatory requirements,” said Andrew Sugrue, Managing Partner at Avenir.
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