Share price of Israeli e-commerce fraud protection platform Riskified (NYSE: RSKD) ended its first day of trading on Wall Street up 23.81% at $26, giving a market cap of $4.08 billion. On Wednesday, the company priced the IPO at $21 per share, above the previously announced range of $18 to $20. RiskFed, founded in 2012 by CEO Ido Gal and CTO Assaf Feldman, has developed an artificial intelligence-based platform, which according to the company allows merchants who sell online to instantly and accurately distinguish between legitimate and fraudulent customers and thus reduce costs and risks. Riskified’s Basic Product Money-Back Guarantee automatically approves or blocks online transactions. The company employs 650 employees, 450 of whom are in Israel. After the IPO, Gal told Globes, “From our point of view, the show was an event that gave us an excellent position, which can help us develop the business. We are the first company in our category to come out and tell the public market the value we create for our customers. We give them 39% of costs and at the same time we increase their sales by 8%. All this by automating the whole process. We believe that this will help us accelerate and acquire the remaining customers in the market. We did not go public because we needed liquidity and we did not need any immediate capital RiskFed raised $363 million, which could grow by an additional $55.1 million, if underwriters exercise their options within 30 days at the IPO price. Meanwhile, Feldman has sold 200,000 shares for $4.2 million but still owns $283 million in shares, while Gal will hold $278 million in stock (at the IPO price). Other major contributors include Genesis ($648 million), General Atlantic ($333 million), Qumra Capital ($233 million), Pitango Growth ($194 million), and Fidelity ($175 million). Gal said, “In simple terms, what we do is that every time someone buys online, you need to know if they have an original, stolen or fake credit card. Every merchant will build an in-house system but we offer this as a service to merchants as a one-stop solution, Including machine learning and cybersecurity.” “We don’t aim to be a tool to be used but to do the whole process. We have built the most advanced system in the world to do that. The more customers that join, the more data we have and we can be smarter and save our customers.” More value, certainly more than each individual trader.” In addition to its core product, Riskified is developing more services including a product that solves the problem of fraud surrounding items being returned to the seller. For example, a customer who orders a product, receives it but claims that it was never delivered and demands a refund. Another product will provide a security solution that ensures that there is no attempt to steal credit card details or loyalty club points. Another product will allow a customer whose transaction has not been approved but has been identified as a legitimate customer, to complete the transaction. Published by Globes, Israel business news – en.globes.co.il – on July 30, 2021 © Copyright Globes Publisher Itonut (1983) Ltd. 2021
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