Alloy raises $52M in further Series C following digital ID partnerships

Know-your-customer (KYC) firm Alloy raised $52 million as a part of its Series C funding led by Lightspeed Venture Partners and Avenir Growth, with participation by existing investors Canapi Ventures, Bessemer Venture Partners, Avid Ventures, and Felicis Ventures.

According to the company’s CEO and co-founder, Tommy Nicholas, Alloy will use the funding to help more banks and fintech companies worldwide manage their compliance and fraud risk.

“To start, we are going to continue to invest in our global expansion. We announced our move into 40 countries last month and continue to invest in our team and presence abroad,” Nicholas explains.

“We are also hard at work building new features and adding new partners to support our growing client base. We’ll be ready to make some bigger investments down the line to support our current and future clients. Stay tuned for more from us. In the meantime, we are also hiring.”

The fresh funds, which bring Alloy’s Series C round to $152 million and the firm’s total funding amount to $207.8 million, come months after the KYC firm entered two separate partnerships with Veriff and Prove, both of which aimed at enhancing Alloy’s technological capabilities.

In the first of these collaborations Veriff is offering its biometric identity verification features on Alloy’s platform, while the second integrated Prove’s phone-based digital ID solutions within the Alloy software.

“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,” points out 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 uniquely holistic view of each customer from the day they onboard and throughout their entire life cycle as a customer.”

In adjacent news, KYC compliance management provider Ondato recently launched a virtual branch service solution enabling banks to provide individuals with virtual face-to-face appointments.

Article Topics

Alloy  |  biometrics  |  digital identity  |  financial services  |  fraud prevention  |  funding  |  KYC