Alloy Secures $100M In Series C Funding Led by Lightspeed Venture Partners, Bringing Valuation to $1.35B

NEW YORK, Sept. 30, 2021 /PRNewswire/ -- Alloy, the leading identity decisioning platform for banks and fintech companies, today announced it has raised $100 million in Series C funding. Lightspeed Venture Partners' Justin Overdorff led the round with participation from existing investors Canapi Ventures, Bessemer Venture Partners, Avid Ventures and Felicis Ventures, bringing the company's valuation to $1.35 billion and the total amount raised to over $150 million.

The new round of financing will be used primarily to further expand Alloy's product offerings to help fintech companies and banks combat fraud by building out a continuously evolving identity profile throughout a customer's lifecycle. Over the last year, what began as a platform used to automate onboarding identity decisions has grown to also include transaction monitoring. With this extended capability, Alloy's API-based platform has started on the journey to creating customer identity profiles that can be used to prevent fraud and minimize risk; future product expansions will incorporate richer data and risk signals to give financial institutions a full, 360-degree picture of their customers.

"We want to make building a fintech product as easy as building an ecommerce product, and we're thrilled to have Lightspeed on board to help us do that," said co-founder and CEO Tommy Nicholas. "Identity and its associated risk isn't something businesses should be figuring out, it should just be something they install. As Alloy grows into a multi-product platform for the full customer identity lifecycle, we can not only help make risk easier to understand, but also further industry innovation by making fintech products easier to build."

Improving the developer experience is a significant priority for the Alloy team, especially when it comes to bringing new products to market. By having risk and identity all in one, easy-to-use place, it will enable developer and product teams to use these tools to their full potential. Alloy's platform brings the many pieces of digital identity into a centralized platform, working across more than 120 data sources to enable customers to make better decisions and take a closer look at the full picture of their customers.

"We're thrilled to put our support behind the Alloy team as their product and mission fits squarely within our thesis that the proliferation of fintech, financial services, and embedded fintech companies is driving increasing demand for tools like Alloy," said Justin Overdorff, Partner at Lightspeed Venture Partners. "Alloy takes the risk off their client's plate while maintaining operational efficiency throughout the customer lifecycle, making Alloy a crucial piece of the fintech infrastructure stack."

The funds will also be used for investments into the Alloy team, expanding all functions of the business to increase output and specialization in a complex industry. In less than a year, Alloy has seen revenue more than triple and headcount increase by 140%. The company currently services over 200 clients including Ally Bank, HMBradley, Gemini, Ramp and Evolve Bank & Trust.

When asked why they decided to use Alloy in a recent case study, Jacob Wallenberg, Risk Operations at Ramp said "If you were only worried about risk, you wouldn't be giving anyone a card. So the question becomes, what return do we get for the additional risk? Alloy automates part of our underwriting process so our Risk Operations team can spend their time figuring out this tradeoff between risk and return."

To learn more about Alloy, visit Alloy.com.

About Alloy
Alloy is the command center for identity that covers your compliance and fraud-fighting needs. Our dynamic platform connects you to more than 120 data source products to help you verify identities and monitor transactions - giving you a holistic view of each customer from the day they onboard and throughout their time with your organization. From automatic decisions and fewer manual reviews to smooth onboarding, Alloy is how smart banks and fintech companies take a closer look at the whole picture. Learn more at Alloy.com and on Twitter @UseAlloy.

About Lightspeed Venture Partners
Lightspeed is a multi-stage venture capital firm focused on accelerating disruptive innovations and trends in the Enterprise, Consumer, and Health sectors. Since 2000, Lightspeed has backed entrepreneurs and helped build companies of tomorrow, including Snap, Affirm, AppDynamics, OYO, Nutanix, Byju's, and Udaan. Lightspeed and its affiliates currently manage more than $10 Billion across the global Lightspeed platform, with investment professionals and advisors in India, Silicon Valley, Israel, China, Southeast Asia and Europe.

SOURCE Alloy