Alloy, a NYC-based identity operating system for the financial services industry, raised $40m in Series B funding.
The round was led by Canapi Ventures with participation from Felicis Ventures and Avid Ventures, as well as existing investors Bessemer Ventures, Primary Venture Partners, and Eniac Ventures. In conjunction with the funding, Canapi Ventures partner Walker Forehand will join Alloy’s board of directors.
The company intends to use the funds to scale its sales and marketing business units, and focus on expanding its R&D to bring new products to market related to transaction and credit decisioning as well as document verification.
Led by co-founder and CEO Tommy Nicholas, Alloy helps banks and fintechs make identity and risk decisions using a single API service and SaaS platform. From initial customer onboarding to ongoing transactions and events, the company leverages data to enable financial institutions to make real-time decisions about high-cost financial risk. Working across more than 60 identity providers, Alloy’s API and dashboard make it easy to onboard customers and automate the vast majority of decisions, mitigating fraud and reducing burden on the back office by removing the need for outdated manual review queues.
The company currently services over 90 customers including Ally Bank, Evolve Bank & Trust, and Brex.