- Alloy — a leading identity decisioning platform for banks and fintech companies — announced recently it has raised $100 million. These are the details.
Alloy — a leading identity decisioning platform for banks and fintech companies — announced recently it has raised $100 million in Series C funding. And Lightspeed Venture Partners’ Justin Overdorff led the round with participation from existing investors Canapi Ventures, Bessemer Venture Partners, Avid Ventures and Felicis Ventures, bringing the company’s valuation to $1.35 billion and the total amount raised to over $150 million.
This round of funding will be used primarily to further expand Alloy’s product offerings to help fintech companies and banks combat fraud by building out a continuously evolving identity profile throughout a customer’s lifecycle. And over the last year – what began as a platform used to automate onboarding identity decisions – has grown to also include transaction monitoring. With the extended capability, Alloy’s API-based platform has started on the journey in creating customer identity profiles that can be used to prevent fraud and minimize risk, future product expansions will incorporate richer data and risk signals to give financial institutions a full, 360-degree picture of their customers.
Improving the developer experience is a significant priority for the Alloy team, especially when it comes to bringing new products to market. And by having risk and identity all in one, easy-to-use place, it will enable developer and product teams to use these tools to their full potential. Alloy’s platform brings the many pieces of digital identity into a centralized platform, working across over 120 data sources to enable customers to make better decisions and take a closer look at the full picture of their customers.
The funds will also be used for investments into the Alloy team, expanding all functions of the business to increase output and specialization in a complex industry. In under a year, Alloy has seen revenue more than triple and headcount increase by 140%. And the company currently services over 200 clients including Ally Bank, HMBradley, Gemini, Ramp and Evolve Bank & Trust.
KEY QUOTES:
“We want to make building a fintech product as easy as building an ecommerce product, and we’re thrilled to have Lightspeed on board to help us do that. Identity and its associated risk isn’t something businesses should be figuring out, it should just be something they install. As Alloy grows into a multi-product platform for the full customer identity lifecycle, we can not only help make risk easier to understand, but also further industry innovation by making fintech products easier to build.”
— Co-founder and CEO Tommy Nicholas
“We’re thrilled to put our support behind the Alloy team as their product and mission fits squarely within our thesis that the proliferation of fintech, financial services, and embedded fintech companies is driving increasing demand for tools like Alloy. Alloy takes the risk off their client’s plate while maintaining operational efficiency throughout the customer lifecycle, making Alloy a crucial piece of the fintech infrastructure stack.”
— Justin Overdorff, Partner at Lightspeed Venture Partners
“If you were only worried about risk, you wouldn’t be giving anyone a card. So the question becomes, what return do we get for the additional risk? Alloy automates part of our underwriting process so our Risk Operations team can spend their time figuring out this tradeoff between risk and return.”
Jacob Wallenberg, Risk Operations at Ramp when asked why they decided to use Alloy in a recent case study
