In a fresh round of funding, financial technology group Feedzai is reported to have raised $200 million from an investment company led by KKR valuing the startup at more than $1 billion. The existing company investors including Sapphire Ventures and Citi Ventures also participated in the fresh round, the San Mateo, California-headquartered company said in a note.

Feedzai develops artificial intelligence and machine learning technology that helps banks and other financial firms to spot and prevent payments fraud, money laundering and other types of illicit activities.

The company with engineering and product operations based in portugal is likely to use the funds for global expansion and enhancing its product range. During the current Covid-19 pandemic times when the use of digital banking and payments has swelled globally, the company looks to focus more on its online activities.

According to the company, the rapid digital shift has led to an increase in online financial crime. Consumers faced a 650% increase in account takeover scams and a 250% increase in online banking fraud attacks in the last quarter of 2020 compared with a year earlier. This has led banks to look for new technology to help to automate and improve some of the checks needed to spot and prevent online crime.

“Financial crime moves fast, 2020 and the global pandemic accelerated that even further,” Nuno Sebastiao, CEO and chairman of Feedzai said adding “To stay ahead, the product and research need to be faster, and that is what we're investing in.”