London-Based Ravelin Raises $20M to Scale AI-Powered Fraud Prevention
Ravelin, the innovative London startup leveraging machine learning to combat online payment fraud, has successfully closed a \(20 million Series C funding round. The investment was led by Draper Esprit, with continued support from existing backers Amadeus Capital Partners, BlackFin Tech, and Passion Capital. This latest funding follows Ravelin's \)10 million Series B round in September 2018.
Cutting-Edge Fraud Detection Technology
Founded in 2016, Ravelin has developed a sophisticated platform that combines:
- Machine learning algorithms
- Graph network technologies
This powerful combination helps e-commerce businesses:
- Reduce fraud-related losses
- Improve order acceptance rates
- Move beyond outdated rule-based systems
“Our technology significantly reduces false positives, giving merchants greater confidence when approving transactions,” explains the company.
Expanding Market Reach and Solutions
While initially successful with food delivery and ride-hailing platforms, Ravelin has expanded its fraud prevention solutions to multiple industries:
Key Sectors Served:
- Travel and ticketing
- Digital entertainment
- Online gaming and gambling
- Retail e-commerce
Fraud Types Addressed:
- Traditional payment card fraud
- Account takeovers (ATO)
- Incentive abuse
- Marketplace supplier fraud
Tackling Complex Fraud Challenges
Account Takeover Prevention: Ravelin helps businesses identify and secure compromised accounts before fraudsters can exploit them. “With data breaches becoming more common, ATO is a rapidly growing threat,” says Gerry Carr, Ravelin’s CMO. “Our solutions help merchants reclaim accounts for legitimate users.”
Incentive Abuse Detection: The platform maps user networks and voucher usage patterns to prevent fraudulent redemption of promotional offers.
Marketplace Fraud Solutions: Ravelin identifies suspicious activity among suppliers, couriers, and buyers to protect marketplace integrity. Carr explains: “We detect anomalous patterns that indicate potential fraud schemes, like fake orders with cash-on-delivery payments.”
Preparing for PSD2 with Ravelin Accept
The company is developing “Ravelin Accept” to help merchants navigate PSD2 regulations while maintaining high transaction approval rates. This new solution will:
- Intelligently route transactions for optimal authentication
- Manage step-up authentication dynamically
- Help merchants qualify for exemptions when possible
“PSD2’s authentication requirements could lead to significant transaction failures,” notes Carr. “Our solution aims to maintain smooth customer experiences while ensuring compliance.”
Future Growth and Industry Recognition
The Series C funding will accelerate:
- Product innovation
- Global market expansion
- Industry-specific solution development
Vinoth Jayakumar of Draper Esprit comments: “Ravelin’s world-class team continues to push boundaries in fraud prevention. We’re particularly impressed by their comprehensive approach to solving diverse fraud challenges across industries.”
With this latest investment, Ravelin is well-positioned to strengthen its position as a leader in AI-driven fraud prevention for the digital commerce ecosystem.
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