Alloy Secures $40 Million in Series B Funding Led by Canapi Ventures
NEW YORK, Sept. 16, 2020 /PRNewswire/ -- Alloy, the identity operating system for the financial services industry, today announced it has raised $40 million in Series B funding. Canapi Ventures led the round with participation from Felicis Ventures and Avid Ventures, as well as existing investors Bessemer Ventures, Primary Venture Partners, and Eniac Ventures. In addition, Canapi Ventures partner Walker Forehand will join Alloy's board of directors.
Alloy helps top banks and fintechs make better identity and risk decisions using a single API service and SaaS platform. From initial customer onboarding to ongoing transactions and events, Alloy leverages data to enable financial institutions to make real-time decisions about high-cost financial risk. Working across more than 60 identity providers, Alloy's API and dashboard make it easy to quickly and safely onboard more customers and automate the vast majority of decisions, mitigating fraud and reducing burden on the back office by removing the need for outdated manual review queues.
Fintechs and banks alike are turning to Alloy to automate their increasingly complex risk decisions. In the last year alone, Alloy has seen significant growth in recurring revenue and its customer base has nearly doubled, servicing over 90 customers including Ally Bank, Evolve Bank & Trust, and Brex. The fully automated Alloy platform delivers a dramaticreduction in fraud, an increase in approval rates for good customers, and a 95% reduction in manual reviews. The company has also more than doubled its internal headcount to accommodate the growing demand for its services.
"The pandemic accelerated a seismic shift in the way consumers and businesses conduct financial services online," says Forehand. "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."
The funds will be used primarily for investments into the Alloy team. First and foremost, the company plans to scale its sales and marketing business units to keep up with the increasing demand. Longer term, Alloy will focus on expanding its R&D to bring new products to market related to transaction and credit decisioning as well as document verification.
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," said co-founder and CEO Tommy Nicholas. "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."
To learn more about Alloy, visit Alloy.co.
About Canapi Ventures
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