Vesta, a global transaction guarantee platform for online purchases, has secured a $25m term loan from Runway Growth Capital, a provider of growth loans.
Vesta’s instant transaction guarantee platform is backed by years of transactional data history. The platform uses machine learning to enable unparalleled approval rates and a better customer experience for online purchases, while also reducing retailers’ exposure to fraud-related costs.
The company said its platform is trusted globally by leading telco, e-commerce, travel, and financial services companies to enhance approvals for legitimate sales and eliminate chargebacks and other forms of digital fraud.
Vesta is headquartered in Portland, US, with offices in Atlanta, Miami, Ireland, Mexico, and Singapore.
Brad Pritchard, managing director at Runway, said, “We are excited to provide additional capital to enhance Vesta’s growth and support the development of a thoughtful and strategic product roadmap.
“When it comes to operations, Vesta has built a high-quality client base in a range of key verticals such as telco, e-commerce, travel and financial services.”
Ron Hynes, chief executive officer of Vesta, added, “Runway is the perfect growth partner; they understand our needs, the changing commerce market, and the long-term trajectory of our business.
“Runway stood out due to the close relationships we’ve formed with their team and because we have found the firm to be a diligent, steady partner who will help us grow aggressively with minimal dilution and thoughtfully structured terms.”
Earlier in 2022, it was reported that global online payment fraud losses are expected to exceed $343bn over the next five years, according to Juniper Research. The research found that fraud prevention vendors must orchestrate the right mix of verification tools if they want to combat the rise in fraud.
The research also claimed that physical goods purchases were the largest single source of losses, accounting for 49% of cumulative online payment fraud losses globally over the next five years.
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