Effectiv, a real-time fraud and risk management platform servicing financial institutions and FinTech companies, has announced a fresh round of funding.
An additional $4.5m in seed funding has been pumped into Effectiv, elevating its total raise to over $9m. The financing round was spearheaded by Better Tomorrow Ventures, with substantial participation from Accel and various angel investors.
Effectiv’s core function revolves around its innovative AI-driven solutions. These include payment fraud detection, customer and business onboarding verification, as well as compliance management. Since its inception in 2022, the company has exhibited stellar growth, helping organisations manage more than $27bn in financial products and currently processing over $100m daily.
The freshly procured funding will be directed towards bolstering Effectiv’s growth and equipping organisations to better fight financial fraud, a problem that has escalated since the advent of the pandemic.
Effectiv CEO and co-founder Ravi Sandepudi said, “We are incredibly grateful that our product has resonated with our partners, especially when fraud is at an all-time high. We also recognise that the financial world is rapidly digitising, changing how consumers and organisations interact.”
In the preceding year, the company has recorded a surge in fraud with real-time payments. In response to this, as banks gear up to adopt FedNow, an instant payment service launched by the Federal Reserve, Effectiv is readying to launch DeviceAI. This new feature, which scrutinises and flags dubious user behaviour on devices, is expected to substantially enhance Effectiv’s payment fraud solutions.
Ritesh Arora, COO and co-founder of Effectiv, also chimed in on the development saying, “Stopping payment fraud and helping organisations with FedNow, are a special focus for Effectiv and an area where our AI and platform truly shine. After months of research and product development, we are very excited to launch DeviceAI.”
This current investment follows Effectiv’s pre-seed round in 2021, led by Accel and also participated in by REV Venture Partners, BHG VC, and angel investors.
Keep up with all the latest FinTech news here
Copyright © 2023 FinTech Global
Copyright © 2018 RegTech Analyst