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Image credits: SEON

SEON, a London-based fraud detection startup, announced on Tuesday that it has raised $94M (approximately €87.1M) in a Series B round of funding. The announcement comes one year after raising $12M (approx €11.1M) in a Series A round in March, 2021. 

The round was led by Silicon Valley-based IVP, with participation from existing investors Creandum and PortfoLion. Angel investors, including founders and senior executives from product-led tech companies Aiven, Coinbase, DataDog, DoorDash, Figma, G2, GitHub, Public, Slack, Supercell, UiPath, Veriff, and Wise, also participated. 

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The funding will enable the company to accelerate its presence in North America, LATAM, and APAC. The capital will help SEON build partnerships with e-commerce platforms, heighten product functionality, and integrate additional data sources to help customers better fight fraud. 

As a part of the funding round, 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,” says Michael Miao.

What does SEON solve?

Fraud is a problem faced by every company that transacts with customers online and in almost every field, from fintech companies to online marketplaces, digital health, education, gaming, and e-commerce companies. 

Consequently, companies need better tools to fight back as bad actors become sophisticated. Previously, fraud tools were only accessible to large enterprises. Here’s where UK’s SEON fills the gaps and aims to democratise access to fraud-fighting technology.

SEON: What you need to know

Founded by Bence Jendruszak and Tamas Kadar, SEON is the go-to fraud prevention solution for fintech companies like Revolut, NuBank, Afterpay, Patreon, Sorare, and Mollie. 

The company’s API-first approach allows enterprises to plug into their system and go live within 24 hours.

SEON’s Data Enrichment module leverages data to establish an individual’s digital footprint based on their email address, phone number, IP address, or location in real-time. 

This approach helps companies accept more transactions while blocking fraudulent ones. 

The company uses AI and machine learning to adapt across sectors, including neo banking, crypto, eCommerce and Buy Now, Pay Later (BNPL), and Web 3.0 sectors. 

SEON says it has experienced significant growth in 2021, tripled its annual recurring revenue, grew its headcount by 4X, and opened new offices in Austin and Jakarta. 

Since its inception, the anglo-Hungarian company has served over 5,000 merchants and reviewed over 1B transactions. 

The company says  it has helped save its customers more than €50M in potentially fraudulent transactions. The company also recently launched an AI-based fraud detection and one-click prevention app on Shopify.

The globally focused business operates offices in Austin (TX), Budapest, London, Jakarta, and Singapore.

“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 trialled by potential customers in less than 30 seconds and up and running in less than a day,” says Tamas Kadar, CEO and co-founder at SEON.