Alloy raises $52m at a $1.5bn Valuation

When Alloy was established in 2015, its goal was to use its lone API service and SaaS offering to assist banks and fintechs in making better identity and risk decisions.

Since then, the business has improved its service by automating not only identity determinations during onboarding but also transaction tracking and credit underwriting.

Eleven months after raising $100 million at a valuation of $1.35 billion, Alloy is now claiming that it has raised another $52 million at a valuation of $1.55 billion. It is great that the firm was able to raise this much money in such a difficult fundraising environment, but it is noteworthy that it has boosted its valuation given that many businesses these days are either failing to get money or funding at flat or even lower levels.

According to Tommy Nicholas, co-founder and CEO of Alloy, increased demand for identity solutions that aid financial institutions in attracting more “good” customers and weeding out the “bad” ones has caused Alloy to treble its annual recurring revenue (ARR) over the previous year.

Simply put, Alloy’s goal is to assist banks and fintechs in preventing fraud and maintaining compliance as they onboard new clients both domestically and internationally. Through a single point of integration, it assists its clients in bringing in consumer information, conventional credit bureau data, and other alternative data.