AirTree and Greycroft return to lead the A+ series of Australian regtech FrankieOne

AirTree and Greycroft return to lead the A+ series of Australian regtech FrankieOne

FrankieOne, a Melbourne-based startup providing an API platform for identity verification and fraud detection, said it added $23 million AUD (about $15.4 million USD) in a Series A+ , bringing his Series A total to $45 million AUD (approximately $30 million USD). FrankieOne says this is the largest amount of VC funding raised by an Australian regtech to date.

The funding included a group of returning investors, including key backers AirTree Ventures and Greycroft, and participants Reinventure (the venture arm of financial services firm Westpac), Tidal Ventures and Apex Capital Partners, who are also existing investors. New strategic investors include Binance Labs and Kraken Ventures.

Founded in 2019 by serial fintech entrepreneurs Simon Costello and Aaron Chipper, FrankieOne connects banking, fintech, crypto and gaming companies to hundreds of data sources and works with 170 financial institutions worldwide. The startup claims to have seen 4x revenue growth in the past 12 months and its clients now include Westpac, Shopify, Afterpay, Binance, Zipmex and Pointsbet. His team has doubled in size in the last year and he’s opened a new office in San Francisco.

Costello told TechCrunch that FrankieOne grew out of a neobank venture he also founded with Chipper called Frankie. Costello and Chipper wanted Frankie to differentiate itself from the rest of the industry with the best onboarding experience, using the best tools available for identity and fraud prevention, but “this process proved unnecessarily complicated, requiring multiple integrations and it was clear that we should have built our onboarding based on risk,” Costello said. They realized that other fintech companies also had the same problems.

FrankieOne founders Simon Costello and Aaron Chipper

FrankieOne founders Simon Costello and Aaron Chipper

As a result, FrankieOne was created to streamline your regulatory and compliance processes. It now provides a single API that connects third-party vendors with over 350 data sources in 48 countries.

Costello explained that most fintechs, banks and cryptocurrency companies face shortcomings in match rates, coverage or ability to scale because they connect to a single vendor for their identity needs. This means that their technology stacks also need constant maintenance.

FrankieOne solves this problem by connecting to hundreds of data sources from multiple partner vendors, meaning their customers no longer have to rely on a single vendor. Connected providers of its API include established financial services companies like Equifax, Experian and Socure, and fast-growing startups like Sardine AI.

“What sets FrankieOne apart is that it enables its clients to switch vendors, build dynamic workflows, add more fraud signals and add new markets, ensuring our clients respond quickly to changing regulations and updated business requirements, without assuming any additional workload,” Costello said.

FrankieOne’s customers are typically medium to large organizations in highly regulated industries that have to adapt to complex policies that change frequently, he added.

As an example of how FrankieOne has been used by its customers, Costello pointed to sports betting app Pointsbet, which previously used a single vendor for customer onboarding but was handling a large number of potential users who could not be verified in real time. This resulted in customers leaving or extra manual work to verify their details. Since working with FrankieOne, Pointsbet has managed to increase customer onboarding by 14%.

When Westpac began digitizing more of their financial services, they were still using separate legacy systems and, as a result, needed to increase success rates to reduce churn. They have integrated FrankieOne’s platform for their KYC (know your customer) function into their new BaaS (banking-as-a-service). This increased success rates significantly, so the company added FrankieOne to its entire group.

The latest round of funding will allow FrankieOne to scale faster and expand into North America, Europe and Asia Pacific. Costello said it will also allow FrankieOne to make a significant investment in its ecosystem of vendors, data sources and fraud capabilities, enabling it to grow its customer base.

#AirTree #Greycroft #return #lead #series #Australian #regtech #FrankieOne

Leave a Reply

Your email address will not be published. Required fields are marked *