Alloy Announces Additional $52 Million for Series C
A FinTech that helps other FinTechs as well as banks to better automate their decision-making process has raised more money on top of its recent “megaround.” Last week, Alloy announced that it had raised another $52 million, with the latest round valuing the company at $1.55 billion. These funds add to the company’s previously-announced $100 million Series C nearly one year ago. The round was led by Lightspeed Venture Partners and Avenir Growth, while existing investors Canapi Ventures, Bessemer Venture Partners, Avid Ventures, and Felicis Ventures also participated. With the new funds, Alloy plans to further expand its product offerings.
Alloy is an “Identity Decisioning Platform” that aims to help banks and FinTechs onboard customers with less risk of fraud — and without the need for manual reviews. The platform makes these decisions using more than 120 data sources. According to a press release, Alloy’s revenue has more than doubled over the past year. Additionally, the company’s services are currently used by Ally Bank, HMBradley, Gemini, and Evolve Bank & Trust among other institutions, with more than one million decisions processed on a daily basis.
Commenting on the extended Series C, Alloy co-founder and CEO Tommy Nicholas stated, “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. With this newest investment, we’ll be able to accelerate our growth and better address the global fraud challenges that companies are facing.”
Elsewhere, Lightspeed Venture partner Justin Overdorff said of his firm’s investment, “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.”
Overdorff added, “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.”
With this addition to its already-impressive Series C, Alloy seems poised to be the next big “behind the scenes” FinTech, joining the ranks of Plaid and Stripe. This is to say that, while most people who might encounter Alloy’s product won’t know they’re doing so — yet, the company continues to grow in terms of valuation and revenue. It’s also notable that this funding raise comes as the FinTech sector has been facing its fair share of challenges. All this is to say that, with unicorn status already achieved, it seems the sky is the limit for Alloy.