SEON, a London-based Anglo-Hungarian startup that powers online fraud prevention raised $94 million in Series B funding. Led by Silicon Valley-based IVP, the round also includes existing investors Creandum and PortfoLion, as well as, angel investors including founders and senior executives from the very best product-led tech companies: Aiven, Coinbase, DataDog, DoorDash, Figma, G2, GitHub, Public, Slack, Supercell, UiPath, Veriff, and Wise. The funding, which comes just a year after the company’s Series A, will be used to expand SEON’s presence in North America, LATAM, and APAC, build partnerships with leading e-commerce platforms, heighten product functionality, and integrate additional data sources to help customers better fight fraud.
As the pandemic accelerated consumer activity and transactions online, identity fraud has grown exponentially. Fraud is a problem faced by every company that transacts with customers online from the world’s most significant financial technology companies to online marketplaces, digital health, education, gaming, and e-commerce companies. Bad actors are becoming increasingly sophisticated and companies need better tools to fight back. Historically, effective fraud tools were only readily accessible to large enterprises with the budget and staff to handle complex implementations. SEON democratizes access to fraud-fighting technology, making the internet a safer place for business.
“SEON is bringing something different to the fraud prevention market by offering an accessible and flexible solution, which delivers instant results. Once discovered, our solution can be trialed by potential customers in less than 30 seconds and up and running in less than a day,” said Tamas Kadar, CEO and Co-founder at SEON.
With an API-first approach, SEON allows enterprises to plug into their system and go live within 24 hours. SEON’s Data Enrichment module uses data to establish an individual’s digital footprint based on their email address, phone number, IP address, or location in real-time. This GDPR-compliant approach to analyzing a user’s digital footprint helps companies accept more transactions while blocking fraudulent ones. SEON’s Full fledged platform leverages the company’s advanced machine learning capabilities to help global enterprise teams set rules, wean out false accounts, and detect fraud in real-time. The company’s solution can verify users with zero friction, enabling businesses to save money and fully complement their KYC / IDV checks.
SEON experienced significant growth in 2021 and is now the go-to fraud prevention solution for companies like Revolut, NuBank, Afterpay, Patreon, Sorare and mollie. In 2021, the company more than tripled its annual recurring revenue, grew its headcount by 4X, and opened new offices in Austin, and Jakarta.
Along with welcoming IVP into its portfolio of investors, SEON will appoint Michael Miao, Partner at IVP to its board.
“Identity is one of the most important and biggest problems on the Internet. This product-led team is making a remarkable dent in fraud prevention by making it easy for every business to adopt its data-driven solution. As fraud explodes at an exponential rate, IVP is honored to help guide this talented group as they work to expedite the fight against online fraud,” said Michael Miao, Partner at IVP.
SEON is the go-to fraud prevention solution for ambitious FinTech leaders, like Revolut, NuBank, Afterpay, Patreon, Sorare and mollie. By offering rapid integration and pay-as-you-go flexibility, SEON is able to offer a simplified, modern way to fight fraud. The company’s industry-leading solution uses AI and fully explainable machine learning to adapt across sectors.
Since its formation, SEON has served over 5,000 merchants and reviewed over 1 billion transactions. In turn, this has helped the company to save its customers more than €50 million in potentially fraudulent transactions. The globally focused business operates offices in Austin (TX), Budapest, London, Jakarta and Singapore.
With specialties in the neo banking, crypto, eCommerce and Buy Now, Pay Later (BNPL), Web 3.0 sectors, SEON is well-equipped to deal with the demands of modern online fraud prevention and has recently launched an AI-based fraud detection and one click prevention app on Shopify.