Riskified Explores Potential Sale Amid Takeover Interest

Riskified, a New York-based provider of fraud prevention software for e-commerce, is exploring strategic options, including a possible sale, after receiving takeover interest, according to sources familiar with the matter.

The company, which has its roots in Israel, has enlisted investment bank Qatalyst Partners to evaluate approaches from potential buyers, the sources said. Due to the confidential nature of the discussions, the sources requested anonymity.

Potential acquirers include digital payment processing firms, online shopping platforms, cybersecurity software providers, and private equity firms, according to the sources. However, the deliberations remain in the early stages, and there is no certainty that a deal will materialize.

Riskified declined to comment on the matter, while Qatalyst Partners did not immediately respond to a request for comment.

Following reports of a potential sale, Riskified’s shares experienced an uptick. The company, which went public through an initial public offering nearly four years ago, currently has a market value of approximately $800 million. However, since reaching its peak in September 2021, Riskified’s stock has plummeted by more than 80%, making it a potential acquisition target.

Similar to many technology firms that debuted on the stock market during the boom years around the turn of the decade, Riskified has struggled to keep pace with competitors. The company has not recorded a net profit since its public listing, according to data from LSEG Workspace.

The company’s latest earnings report, released on Wednesday, revealed a wider net loss of $4.1 million for the quarter ending December 31, compared to a $3.3 million net loss in the same period a year earlier. Riskified attributed this decline to the loss of several large customers in key sectors.

Founded in 2013, Riskified specializes in fraud prevention software that helps retailers secure digital transactions against scammers. Its client base includes high-profile brands such as fashion house Prada, online travel platform Booking.com, and luxury jewelry brand Swarovski, according to the company’s website.

By fLEXI tEAM