- Behavioral biometrics and fraud detection innovator BioCatch has raised $40 million in funding.
- The investment gives Permira a “significant minority stake” in the Tel-Aviv-based company.
- BioCatch made its Finovate debut at FinovateFall 2014.
Behavioral biometrics innovator BioCatch has raised $40 million in funding courtesy of an investment from Permira Growth Opportunities. The capital gives Permira a “significant minority stake” in the New York and Tel Aviv-based company. In fact, along with Bain Capital and Maverick Capital, this week’s capital infusion makes Permira BioCatch’s third largest shareholder.
“Permira is one of the leading global private equity firms in the world, with particularly strong experience in the technology space,” BioCatch CEO Gadi Mazor said. “We believe its deep sector expertise and company-building capabilities will help us to expand our business and strengthen our global position.”
The funding takes BioCatch’s total capital raised to more than $213 million. No new valuation information was provided. BioCatch will use the capital to help support geographical expansion, product development, and potential M&A.
BioCatch is a pioneer in behavioral biometric intelligence and advanced digital fraud detection. Its technology leverages AI and machine learning to collect thousands of data signals to analyze the cognitive intent of users. This enables BioCatch to provide highly accurate insights into the legitimacy of a user’s identity and behavior. Financial institutions using BioCatch’s technology have been able to better fight fraud, accelerate digital transformation efforts, uncover new revenue opportunities, and boost customer satisfaction.
Founded in 2011, BioCatch made its Finovate debut at FinovateFall in 2014. In the years since, the company has grown into a fraud detection leader with a global footprint of 22 countries. More than 100 international banks rely on BioCatch’s technology to fight financial crime and defend themselves against fraud. BioCatch announced early this year that 2022 had been the firm’s “most successful” – with annual recurring revenue growth of more than 40%. BioCatch also revealed that the company added more than 100 leading global banks as customers in 2022 and detected more than $1.5 billion in fraud, saving banks nearly $1 billion.