Alloy, the identity operating system for the financial services industry, has raised $40 million in Series B funding.
Alloy helps top banks and fintechs make better identity and risk decisions using a single API service and SaaS platform. In the last year, Alloy has seen growth in recurring revenue and its customer base has nearly doubled, servicing over 90 customers. The company has also more than doubled its internal headcount to accommodate the growing demand for its services.
The funds will be used primarily for investments into the Alloy team. The company plans to scale its sales and marketing business units to keep up with the increasing demand. Longer term, Alloy will focus on expanding its R&D to bring new products to market-related to transaction and credit decisions as well as document verification.
“The pandemic accelerated a seismic shift in the way consumers and businesses conduct financial services online,” says Walker Forehand, partner at Canapi Ventures who will join Alloy’s board of directors.
“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.”
“Our investors have extensive experience scaling fintech companies and developing industry-changing SaaS platforms. Their investment is a further validation of our team and mission to help financial companies deploy safe and seamless digital customer experiences. We couldn’t ask for better partners to enter the next phase of growth with,” said Tommy Nicholas, co-founder and CEO of Alloy.