November 27, 2022


Stock development

UK Data Startup Raises Series D From Private Equity Giant

  • Contextual knowledge startup Quantexa has lifted $153 million in Series D funding.
  • The round was led by major New York non-public equity fund Warburg Pincus.
  • Quantexa promises to have developed 108% year-on-calendar year in portion owing to rising financial crime.
  • See extra tales on Insider’s business enterprise website page.

A contextual details startup that can help some of the world’s most significant banking institutions deal with fiscal criminal offense has lifted $153 million.

London-based mostly Quantexa, which was established in 2016, deploys automation at fiscal companies to handle problems all around compliance, anti-revenue laundering, and fraud.

The company, which counts the likes of HSBC, Danske Bank, and Normal Chartered amid its customers, elevated the cash in a Sequence D spherical led by New York private equity investor Warburg Pincus.

Vishal Marria, Quantexa chief govt, claimed the pandemic experienced tested to be a boon for the company, as the adoption of digital options accelerated and monetary crime increased.

“Our subscriptions and person figures have doubled about the past year because of rising fraud and new designs of income laundering,” Marria informed Insider.

“We have viewed an raise in demand from customers from clientele for our products since of their acceleration to electronic from COVID-19.”

The enterprise, which claims to have grown by 108% 12 months-on-12 months, delivers a array of merchandise to assistance corporations provide together siloed or disconnected data sets and then applies equipment learning and AI to solve use situations like anti-income laundering (AML) and fraud.

In addition to fiscal solutions, Quantexa also deploys its tech in govt companies to enhance final decision-creating, and also in the insurance policies and communications industries.

International authorities issued $13.74 billion in AML fines as of Oct 2020, per Finbold’s 2020 financial institution fines report. Because the Panama Papers leak in 2016, governments and economic institutions have been below raising stress to crack down on illegal and fraudulent activity. 

Marria compares the firm’s contextual info tactic to getting a residence.

“You would not choose on obtaining a dwelling just by on the lookout by means of the letter box,” he said. “You would do a comprehensive tour of the interior and then also consider external aspects like educational facilities, criminal offense amount, areas to try to eat, this is the context we are offering worth on for shoppers by aggregating those major details sets in a scalable and productive way.”

Quantexa started its fundraising method at the beginning of June. Marria stated the course of action being performed above video clip was practical to enable sieve out time wasters in the process.

The startup also lifted $65 million final July with Marria including: “If you’d instructed me pre-COVID-19 that we’d have completed two financial commitment rounds around

I would have laughed.”

The Series D spherical was led by New York personal equity huge Warburg Pincus with involvement from current traders these as Dawn Capital, AlbionVC, Evolution Fairness Associates, HSBC, ABN AMRO Ventures and British Affected individual Cash.

Quantexa declined to remark on valuation but the round is believed to be near to but not nonetheless at unicorn standing. 

Funding will go in direction of continuing Quantexa’s development over and above monetary companies and into successful govt contracts as well as geographical enlargement into the Middle East and Africa as nicely as Japan. The startup has about 350 complete time employees across offices in Europe, Asia, and North The united states. 

Look at out Quantexa’s (partly redacted) pitch deck: