By: 6 October 2021

The new round of funding will be used to expand Alloy’s product offerings to help fintech companies and banks combat fraud

Fraud prevention specialist Alloy raises $100m

Alloy, the New York, USA-based fraud prevention technology provider, has raised $100 million in series C funding.

Lightspeed Venture Partners led the round, with participation from existing investors Canapi Ventures, Bessemer Venture Partners, Avid Ventures and Felicis Ventures, bringing the company’s valuation to $1.35 billion and its total raised to more than $150 million. 

The new round of funding will be used to expand Alloy’s product offerings to help fintech companies and banks combat fraud by building out a continuously evolving identity profile throughout a customer’s lifecycle.

Over the last year, what began as a platform used to automate onboarding identity decisions has grown to also include transaction monitoring, according to Alloy.

With this extended capability, Alloy’s API-based platform has started on the journey to creating customer identity profiles that can be used to prevent fraud and minimise risk. Future product expansions will incorporate richer data and risk signals to give financial institutions a full, 360° picture of their customers.

Tommy Nicholas, co-founder and chief executive officer at Alloy, comments: “We want to make building a fintech product as easy as building an ecommerce product, and we’re thrilled to have Lightspeed on board to help us do that.”

“Identity and its associated risk isn’t something businesses should be figuring out, it should just be something they install. As Alloy grows into a multi-product platform for the full customer identity lifecycle, we can not only help make risk easier to understand, but also further industry innovation by making fintech products easier to build.”

Alloy says improving the developer experience is a significant priority, especially when it comes to bringing new products to market.

The company aims to have risk and identity all in one, easy-to-use place, enabling developer and product teams to use these tools to their full potential.

Alloy’s platform already brings the many pieces of digital identity into a centralised platform, working across more than 85 data sources to enable customers to make better decisions and take a closer look at the full picture of their customers.

Justin Overdorff, partner at Lightspeed Venture Partners, says: “We’re thrilled to put our support behind the Alloy team as their product and mission fits squarely within our thesis that the proliferation of fintech, financial services, and embedded fintech companies is driving increasing demand for tools like Alloy.” 

“Alloy takes the risk off their client’s plate while maintaining operational efficiency throughout the customer lifecycle, making Alloy a crucial piece of the fintech infrastructure stack.”

The new funding will also be invested in the Alloy team, expanding all functions of the business to increase output and specialisation.

In less than a year, Alloy has seen revenue more than triple and headcount increase by 140%. The company currently services more than 200 clients, including Ally Bank, HMBradley, Gemini, Ramp and Evolve Bank & Trust.

Image: Alloy