Portuguese fraud prevention fintech Feedzai has surpassed a $2 billion valuation after raising approximately $75 million in a Series E funding round, coinciding with its selection as a primary provider of fraud detection and prevention services for the European Central Bank’s proposed digital euro.
The Series E investment round saw continued support from existing investors Oxy Capital and Buenavista Equity Partners, alongside new institutional partners Iberis Capital, Lince Capital, and Explorer Investments. This latest capital injection follows Feedzai’s $200 million Series D in 2021, which had valued the company at $1 billion. Earlier this year, Feedzai acquired US-based data integration and onboarding specialist DemystData.
Founded in 2011, Feedzai provides cloud-based risk management solutions, including tools for anti-money laundering (AML), transaction fraud prevention, and customer verification. The company reports safeguarding over $70 billion in annualised payment volume globally across card transactions and bill payments.
The agreement with the European Central Bank (ECB) positions Feedzai to deliver fraud risk scoring for every digital euro transaction. This contract, valued at €79.1 million ($92 million) with potential to increase to €237.3 million ($280 million), involves collaboration with subcontractor PwC. Feedzai stated that while framework agreements set terms for future work, actual component development decisions will be made at a later stage.
Feedzai is one of several fintech firms chosen by the ECB for the digital euro initiative. Other selected companies include Almaviva and Fabrick for mobile application development, EquensWorldline for secure data exchange, Sapient for alias look-up functionality, and Giesecke+Devrient for offline payment capabilities.
