Alloy Raises $40M, Plans to Grow Sales and Marketing Teams

by Ellen Glover
September 16, 2020
NYC-based Alloy raises $40M, plans to grow sales and marketing teams
Photo: Alloy

Alloy, an NYC-based startup that helps companies in the financial industry operate more efficiently, announced Wednesday it closed on a $40 million Series B round led by Canapi Ventures, bringing its total funding raised to more than $56 million.

The SaaS platform helps banks and other fintech companies make better identity and risk decisions. By leveraging available data, Alloy’s tool allows any financial institution to make quick decisions about matters that involve high-cost risks. It also covers everything from initial customer onboarding to ongoing transactions and events, ensuring all activities are secure.

At the end of the day, Alloy’s goal is to mitigate fraud and reduce the burden on the back office operations by removing the need for outdated manual review queues. All of this, says Canapi Ventures partner Walker Forehand, is especially useful in a post-COVID world.

“The pandemic accelerated a seismic shift in the way consumers and businesses conduct financial services online,” Forehand, who will be joining Alloy’s board of directors, said in a statement. “We’re operating at a time where digital channels, online account activity, and cybercrime have exploded. New technology and approaches are needed to help financial institutions scale digitally while managing these risks in an operationally efficient way. We are thrilled to put our support behind the Alloy team and its technology to help banks and fintechs solve digital identity challenges.”

Meanwhile, Alloy has seen significant growth over the last year, claiming its customer base has nearly doubled to more than 90 financial institutions. The company has also managed to double its headcount.

To keep up with this surge in demand, Alloy says it will use this fresh funding to grow the team even more, specifically its sales and marketing departments. Down the road, the company will expand its R&D to roll out new products related to transaction and credit decisioning and document verification.

“Another exciting project for our customers will be the creation of a learning portal to expand the value they get from our platform and develop their expertise in an ever changing industry,” co-founder and CEO Tommy Nicholas said in a blog post. “We will be working to create ongoing training materials, interactive certification programs, webinars and other tools to ensure that your team is tactically enabled, as well as kept up to date with industry best practices and knowledge.”

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