Alloy gets $52M to help fintech companies fight fraud with identity tools

Share now

Read this article in:

©  Alloy

Alloy, a New York-based Identity Decisioning Platform for banks and fintech companies, has raised an additional $52M at a $1.55B valuation led by Lightspeed Venture Partners and Avenir Growth.

The US fintech company will use the funds to accelerate its growth to address the global demand for fraud prevention tools. The announcement comes a few days after expanding into 40 countries across North America, EMEA, LATAM, and APAC.

“We feel incredibly lucky to have partners that understand the impact of our investments into our platform and in expanding not only globally but also proactively come to the table to support them,” says 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.”

Identity Tools

Alloy connects banks and fintech companies to more sources of compliance data such as KYC and AML. The company was founded in 2015 and has developed identity tools to help new customers fight fraud and stay compliant for US and international customers.

Alloy’s API-based platform is currently used by over 300 companies to connect to 160 different data sources. This allows them to automatically make identity decisions during account origination, continue monitoring accounts and more.

Alloy sees double-digit revenue growth over the last year. The company currently serves several finace and banking firms, including Ally Bank, HMBradley, Gemini, Ramp and Evolve Bank & Trust. Their customers make over a million decisions every day that Alloy processes.

Justin Overdorf from Lightspeed Venture Partners said, “Fraud rates are on the rise, and it’s one of the biggest risks for new financial technology. By providing their platform to both emerging fintech companies and established banks, Alloy plays a key role in the financial ecosystem. Their expertise and platform allows banks and fintech companies to see each customer in a uniquely holistic way from the moment they sign up all the way until their account is closed.”

Andrew Sugrue, a managing partner at Avenir, stated that what makes Alloy unique is the company’s powerful platform combined with the guidance they consistently provide to assist companies of all sizes with regulatory requirements and risk management.


Get the top Stories in your Inbox

Sign up for our Newsletters

Specials from our Partners