Risk and compliance firm Unit21 bags $45m in Tiger Global-led Series C funding round

Unit21, a risk and compliance infrastructure company, has recently announced the successful completion of a $45m series C funding round. The investment round, led by global investment firm Tiger Global and entrepreneur community South Park Commons in 2022, was a significant boost for the organisation.

This impressive funding round was participated in by renowned investors such as Tiger Global and South Park Commons. The proceeds of the round have enabled the accelerated growth of the FinTech Fraud DAO consortium, an initiative which has seen a considerable surge in participation and now oversees more than 10% of adult consumer transactions in the US.

Unit21 operates in the risk and compliance infrastructure domain, with a specific focus on fraud prevention. The company has led a transformation from traditional fraud detection methods to more proactive fraud prevention techniques, in response to the rising cases of financial fraud. According to the Federal Trade Commission, consumer losses due to fraud have spiked from $1.9bn in 2019 to an alarming $8.8bn in 2022.

The newly procured funds will be deployed to fortify the firm’s collaborative strategy aimed at combatting the growing threats of fraud and money laundering. To this end, Unit21 has built a robust risk and compliance infrastructure that equips its partners with effective tools for rapid and efficient detection and halting of fraudulent activities.

Last autumn, Unit21 rolled out the FinTech Fraud DAO. The platform allows FinTech firms to collectively pool and share data to preemptively identify and thwart fraudulent activities. Members of this initiative include companies such as Drivewealth, Uphold, and Gusto, and the platform now monitors over 10% of adult consumer transactions in the US.

“Our mission is to champion fraud prevention over detection. The evolution of fraud calls for an evolution in our approach and must be achieved through collaboration,” Unit21’s co-founder and CEO, Trisha Kothari, stated.

In addition, the company announced the publication of the “Fraud Fighters Manual,” a resourceful book offering insights and lessons to prevent fraud, developed in collaboration with FinTech leaders from Brex, Mercury, Lithic, and Treasury Prime.

South Park Commons founder Ruchi Sanghvi said, “Trisha and Clarence incubated Unit21 at SPC with the vision that combating fraud and money laundering requires an industry-wide collaborative effort. This vision is becoming a reality through the rapid adoption of the FinTech Fraud DAO.”

Keep up with all the latest FinTech news here.

Copyright © 2023 FinTech Global

Enjoying the stories?

Subscribe to our daily FinTech newsletter and get the latest industry news & research


The following investor(s) were tagged in this article.