U.K.-based data and analytics platform provider Quantexa today announced a $153 million Series D round fundraise. The company’s AI-based contextual decision intelligence platform focuses on know-your-customer, anti-money laundering and fraud processes, and is used in more than 70 countries by governments and financial institutions, including the $3 trillion HSBC and $789 billion Standard Chartered Bank.
The solution uses entity resolution, graph analytics and artificial intelligence to create graph-based network views and operational analytics that can be deployed in batch or real time, as different use cases require.
“Here we are addressing a significant gap in an increasingly important part of the industry,” company founder and CEO Vishal Marria told Bank Automation News. “Our growth rate has been 100% year on year for the last five years, and the rate of new customer acquisition growth, even during the pandemic, reflects how relevant our value proposition is.” The company, which was founded in 2016, is valued by the new fundraise at between $800 and $900 million, Marria told BAN.
“This enables organizations to proactively identify the patterns and typologies within the data to surface new opportunities and/or detect risk, enhanced by machine learning, giving them confidence that all automated decisions are more intelligent and can be trusted,” Marria said. “When you have all this context, you can visualize the most important relationships between data points so operational staff can make trusted decisions faster.”
Warburg Pincus, the private equity firm leading the current round, has “specifically identified artificial intelligence and machine learning” fintech as a significant opportunity,” Managing Director Peter Deming told BAN. Earlier this year, Warburg Pincus led a $75 million fundraise for Personetics, a provider of data-driven personalization and customer engagement solutions for banks and financial services providers.
The fintech’s new funding will be devoted to increasing investment in commercial functions and growing its partner base and building out industry sectors. According to Marria, the fintech will also soon announce its expansion into new use cases and applications, including environmental, social and governance initiatives, and supply chain resilience.
The current stage in funding may hint at a possible IPO in the near future for the company. “While we can’t provide specifics on this point right now, Quantexa’s growth trajectory along with our addressable market potential and technology leadership means IPO is an option we will be looking at in the medium term,” Marria said.
