CVC Capital Partners’ investment fund, CVC Growth Fund, will provide an $80 million growth equity investment to Kount, a provider of online and mobile fraud detection and prevention solutions.
The fraud protection company will use the money to accelerate product innovation, expand its global footprint, and enhance customer support services.
Based in Boise, ID, Kount provides cloud-based fraud detection solutions that allow merchants to reduce fraudulent transactions made online and via mobile while increasing revenue by accepting more valid orders. Kount eliminates or reduces manual reviews of potentially fraudulent transactions for its customers and reducing credit card chargebacks.
The company said its technology is used by the likes of Chase Paymentech, PayPal-owned Braintree, New Balance, and Spotify.
“Online merchants face greater fraud challenges than ever before. CVC’s funding and strategic guidance will provide Kount with significant resources to continue investing in our industry-leading fraud prevention solutions and to deliver the tools our customers need to combat fraud every day,” said Brad Wiskirchen, CEO, Kount.
The investment comes at a time when the security and fraud protection industry is expanding. In September, nine out of ten (87 per cent) cybersecurity experts said they believe mobile payment data breaches will grow in the next 12 months.
Furthermore, Kount’s own 2015 Mobile Payments & Fraud Survey found that many organizations are not keeping pace with mobile fraud growth, as over half (60 per cent) of respondents are uncertain if mobile fraud is growing at a faster, slower or equal pace as their overall mobile transaction volume.
“The payments fraud and security industry is one that we have been actively targeting for a while, and we identified Kount as the obvious industry leader,” said Jason Glass, Managing Director at CVC Growth Partners.
The funding round totalled $61m, and will used to finance the company's global expansion plans.
Monzo also revealed its latest funding round last week.
A further £2.5m is expected to be raised from crowdfunding on Tuesday.
Funding Circle has perhaps started 2017 in a better way than most. The London-based lending platform that connects small businesses with investors has raised $100m (£82m) in equity investment.