Financial fraud solution provider Feedzai has reached a valuation of more than $1 billion following its latest funding round, giving it unicorn status.

The San Mateo headquartered start-up raised $200 million in a round led by investment company KKR, who were joined by existing investors Sapphire Ventures and Citi Ventures.

Feedzai develops artificial intelligence and machine learning technology to help financial services institutions spot money laundering, payments fraud, and other types of illegal activity.

The company, whose engineering and product operations are based in Portugal, boasts Citigroup, Fiserv and Banco Santander, and FinTech SoFi as clients.

The company said it will use the funding to accelerate global expansion and expand its product range.

Feedzai’s own research reported a 650 per cent year-on-year increase in account takeover scams and a 250 per cent year-on-year increase in online banking fraud attacks in the final quarter of 2020.

Feedzai were founded in Portugal in 2009 by Paulo Marques and Pedro Bizarro.

The Portuguese government is currently offering start-up visas for non-EU tech entrepreneurs as way of encouraging tech investment.

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

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