Israeli-founded fraud prevention firm Riskified said to be weighing sale — report
Riskified went public in 2021 at a valuation of $3.3 billion, but has seen its market value drop to about $855 million; it has reportedly received a few takeover offers
Sharon Wrobel is a tech reporter for The Times of Israel
Israeli-founded Riskified, a fraud prevention firm for e-commerce, is said to be weighing a potential sale after drawing takeover interest in a deal that could be worth more than $1 billion.
The fintech firm has hired investment bank Qatalyst Partners to review takeover offers from suitors, Reuters reported, citing people familiar with the matter.
Riskified listed its shares through an initial public offering on the New York Stock Exchange in July 2021, at a valuation of $3.3 billion. As of March 5, the firm had a market value of about $855 million. A potential deal to acquire the firm could be worth at least $1 billion, according to estimates in the Hebrew press.
Riskified declined to comment on the Reuters report when contacted by The Times of Israel.
Potential suitors for a takeover of the fintech firm include digital payments processing firms, online shopping platforms, cybersecurity software makers, and private equity firms. However, discussions are said to be at an early stage, sources told Reuters, cautioning that a deal is not certain.
Riskified was established in Israel in 2013 to combat online payment fraud. Its artificial-intelligence-based risk management platform uses machine learning to weed out potential fraud for online merchants and help them reduce abuse and uncertainty in digital transactions. The company says its technology reduces losses and operating costs, while pushing sales higher and strengthening relationships with consumers.
Its customers are mainly online travel and e-commerce merchants, including Shein, Wayfair, Finish Line, Prada, Peloton, AirEuropa, Revolve, and Steve Madden.
The reported takeover interest comes a day after Riskified released its earnings. In 2024, the fintech firm saw revenue increase 10 percent to $327.5 million year-on-year. The fintech firm reported a loss of $34.9 million in 2024, which narrowed from $59 million in the year-earlier period. In the last three months of 2024, its net loss widened to $4.1 million from $3.3 million during the same quarter a year ago.
The firm provided guidance for revenue expectations of a range of $333 million to $346 million for 2025.
