Seon, a startup that’s focused on assisting Fintechs like Revolut with addressing online fraud, has secured $94 million in capital, in order to implement various tools for preventing sanctions evasion by Russia.
IVP Partner Michael Miao has now joined Seon’s board.
Existing investors Creandum, an early Spotify investor, as well as PortfoLion, have contributed to the raise as well. Angel investors such as Coinbase COO Emilie Choi and UiPath CEO Daniel Dines joined as well.
Its software analyzes a client’s email address, phone numbers and various other data points in order to create a “digital footprint,” and then leverages machine learning to figure out if they’re legitimate or suspicious.
The company has been valued at $500 million following its latest round. This, according to sources cited by CNBC (which claimed to be familiar with the matter).
Tamas Kadar, CEO and Co-founder at Seon, noted that his firm has seen greater demand for tools that identify transfers from sanctioned persons and other entities (in addition to “politically exposed persons” during the Russian invasion of Ukraine).
Part of the proceeds will be channeled towards the potential use of Fintech apps for money laundering and sanctions evasion.
Kadar said that they are “working on an arm to support this need from our client base.”
Seon is also currently working on a function that should be able to verify companies online and determine if their shareholders have been placed on sanctions lists.
These types of tools may identify if someone is “just creating shell companies to launder money,” or “as a fake identity to hide their assets,” Kadar added.
Seon has now “prioritized this feature to be added in the next quarter,” he confirmed.
Increasing tensions over the Ukraine conflict mean there has “arguably never been a more challenging time for international financial institutions.” This, according to statements from Charles Delingpole, the Chief Executive of AML platform ComplyAdvantage, and an early backer of Seon.
Delingpole told CNBC that the COVID-19 crisis “saw a rapid shift to online-only activity away from branches, which saw fraudsters gain many more opportunities to perpetuate fraud,”
The capital injection will also be directed towards helping Seon expand its operations in the US and in Latin American and Asian markets.
The firm further revealed that its yearly recurring revenue (approximately) tripled last year, meanwhile, its client base more than doubled (to around 250 from only 100).
Kadar and Jendruszak established Seon in Budapest, Hungary, back in 2017.
Kadar has moved the firm’s head offices to the United Kingdom.