Alloy, an identity operating system for the financial services space, has closed its Series B round on $40m.
The investment was led by Canapi Ventures, with contributions also coming from Felicis Ventures and Avid Ventures. Previous Alloy backers, Bessemer Ventures, Primary Venture Partners and Eniac Ventures also committed capital to the round.
There were also a handful of angel investors taking part in the Series B, including Avid Ventures founder and managing partner Addie Lerner and Felicis Ventures general partner Victoria Treyger.
Capital from this round will be used to scale the FinTech’s team, with initial focus being put on the sales and marketing units.
In addition to this, the company is hoping to increase its R&D efforts and launch new products, including those related to transaction and credit decisioning, and document verification.
Alloy helps banks and FinTechs automate their identity compliance and fraud decisions, with a dashboard to ease KYC and AML management. Through its single API, a company can safely onboard customers, mitigate fraud, and handle high-cost financial risk.
The platform leverages data to enable financial institutions to make real-time decisions on high-cost financial risk.
Its platform can automate decisioning by leveraging 60 data sources and will flag suspicious or risky transactions, detect account takeovers, and more. The dashboard also centralizes case management, shows alerts, decision audit trail and reporting.
In line with the deal, Canapi partner Walker Forehand will join Alloy’s board of directors.
Forehand said, “The pandemic accelerated a seismic shift in the way consumers and businesses conduct financial services online.
“We’re operating at a time where digital channels, online account activity, and cybercrime have exploded. New technology and approaches are needed to help financial institutions scale digitally while managing these risks in an operationally efficient way. We are thrilled to put our support behind the Alloy team and its technology to help banks and FinTech’s solve digital identity challenges.”
Last year, the company secured $12m in its Series A round. The investment was supported by Bessemer Venture Partners, Eniac Ventures and Primary Venture Partners.
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