Antifraud technology provider Riskified will make its debut as a public company today as it begins trading on the New York Stock Exchange. The New York City-based fraud prevention platform priced the initial public offering of more than 17 million shares at $21 each. The company expects to raise more than $360 million in its IPO.
While 2020 had devastating economic consequences for many business sectors, e-commerce was one of the few winners. Covid-19-induced lockdowns globally led to significant increases in online activity and commerce. But that success has come at the price of surging fraud. Even before the pandemic, e-commerce merchants, which are financially liable for fraud losses on card-not-present payments, had been employing increasingly sophisticated technology to identify and prevent a wide variety of online fraud attacks. The past 18 months have made that need even greater, presenting established technology providers like Riskified the opportunity to explore new funding sources.
It is one of the first pureplay e-commerce fraud solution providers to go public and Chief Revenue Officer Pete Elmgren credited the company’s early development of a machine learning-based system to prevent fraud.
“From the beginning we believed we could outperform individual merchants’ in-house solutions with a machine learning platform fed with data from across the world and across industries,” Elmgren told Card Not Present. “We have more than one billion historical transactions in our platform from hundreds of the world’s largest merchants, which drives significant network effects, such as repeat transaction histories on more than 400 million consumers globally—that’s much more than most merchants can collect on their own.”
Elmgren noted that global e-commerce revenue is expected to continue to grow, despite last year’s historic surge, reaching $6.4 trillion in 2024 from $4.3 trillion in 2020, according to an eMarketer prediction.
Riskified was also part of a vanguard of software providers to guarantee losses on transactions that were approved by its system. The company will trade on the NYSE under the symbol RSKD.
NYSE image courtesy of CRC Media.