Sequoia China has led a $40-million Series C funding round in California-headquartered fraud detection solutions provider DataVisor. The round was joined by return backers New Enterprise Associates (NEA) and GSR Ventures.
As part of the deal, Sequoia China managing director Rock Wang will join DataVisor’s board of directors. In a statement, DataVisor said it will use the funding to expand its global footprint in the fraud detection and prevention market, which is estimated to reach $41.6 billion by 2022 according to research firm MarketsandMarkets.
DataVisor’s fraud detection solutions use machine learning to identify various types of fraud and abuse, including fraudulent transactions, fake content, spam and abuse, identity theft, application fraud and money laundering, according to a statement.
“Enterprises today are facing constantly evolving threats from sophisticated and tech-savvy fraudsters who continuously experiment and find ways to evade detection. This new round of financing will enable us to further improve our technology, expand our services globally and transform the way that businesses fight fraud,” said Yinglian Xie, co-founder and CEO, DataVisor.
Founded in 2013 by Xie and Fang Yu, DataVisor claims to have catered to more than 2 billion users globally from financial institutions and internet properties in the world, including Pinterest, Yelp, Alibaba Group, Dianping, Toutiao, Cheetah Mobile and Tokopedia. It has offices in Beijing and Shanghai.
“Online fraud is on the rise in China and globally and many enterprises are investing in advanced artificial intelligence (AI) solutions to tackle the threat. DataVisor’s platform delivers best-in-class technology,” said Neil Shen, Founding and Managing Partner of Sequoia China.
Founded in 2005 by Shen, the China arm of Sequoia Capital is looking to raise up to 15 billion yuan ($2.37 billion) in its fifth yuan-denominated fund, the largest of its kind, according to a recent Reuters report citing sources. Sequoia Capital is said to be raising up to $8 billion in its largest-ever fundraising and is tapping Chinese investors for the same.