Israel’s ThetaRay secures $57m to accelerate global expansion
ThetaRay, an Israeli provider of AI-based transaction monitoring and screening solution Sonar, has secured $57 million in a fresh funding round led by Portage.
ThetaRay raises $57m
The round also saw investments come through from ThetaRay’s existing investors, including OurCrowd, and its largest shareholder JVP.
Founded in 2013 and headquartered in Hod Hasharon, ThetaRay’s cloud-based Sonar solution uses patented AI technology to monitor financial transactions “quickly and accurately” and help banks and fintechs increase efficiency and reduce the risk of financial crime.
In the last two years, ThetaRay claims to have grown its customer base by 10x, with an annual recurring revenue growth of over 5x. Recent clients include Nigerian paytech VigiPay, and the UK open banking fintech Noda.
“Global payment infrastructure too often fails to accurately differentiate between perfectly legitimate transactions and ones from bad actors dealing with illicit funds,” comments Peter Reynolds, who was recently appointed as CEO of ThetaRay, adding that the funding is a “massive vote of confidence” for the company’s team and technology.
Devon Kirk, partner and co-head of Portage Capital Solutions, says: “We know that banks and fintechs are looking for ways to grow their businesses while managing risk and compliance costs and that in many areas, including AML, legacy systems are simply not working.
“ThetaRay is bringing much-needed innovation to enable transactions and fight financial crime.”
With the fresh investment, ThetaRay plans to expedite its international expansion “across continents” and capitalise on the “significant market demand” it sees as banks and fintechs look to replace legacy financial crime detection technologies.
