ThetaRay Secures $57M to Strengthen AI-Powered Battle against Money Laundering

ThetaRay Secures $57M to Strengthen AI-Powered Battle against Money Laundering

Popular Israeli fintech company ThetaRay, known for its cutting-edge AI-based transaction monitoring and screening solution, Sonar, has secured $57 million in a funding round. The announcement, made on Tuesday, revealed that the fresh round was led by Portage, with the participation of existing investors like OurCrowd and JVP, the company’s largest shareholder.

The company, founded in 2013 and headquartered in Hod Hasharon, has gained recognition for its cloud-based Sonar platform, which harnesses patented artificial intelligence (AI) technology to swiftly and accurately monitor financial transactions. This innovative approach empowers banks and fintech companies to boost operational efficiency and reduce the risk of financial wrongdoing.

ThetaRay Plans International Expansions

According to the announcement, the company said the funds will be used for international expansion across continents to capitalize on significant market demand as banks and FinTech urgently look to replace legacy tools with next-generation financial crime detection technology.

The company has already established its presence in key markets with offices in New York, Madrid, London, Dubai, and Tel Aviv.

Peter Reynolds, recently appointed CEO of ThetaRay, emphasized the critical need for advanced technology in distinguishing between legitimate and illicit financial transactions within the global payment infrastructure. He hailed the funding round as a “massive vote of confidence” in both the company’s technology and its dedicated team.

“Global payment infrastructure too often fails to accurately differentiate between perfectly legitimate transactions and ones from bad actors dealing with illicit funds. We’re proud to be at the forefront of the revolution to make global transactions easier, safer, and cheaper and are keenly aware of the massive vote of confidence this investment is in both our technology and our team,” said Reynolds.

Fight against Money Laundering and Other Illicit Activities

The fight against money laundering and other illicit activities remains a pervasive global issue, with illicit funds estimated to account for 2-5% of the global GDP, as reported by the United Nations. In this context, technology-driven solutions, such as ThetaRay’s AI platform, Sonar, are instrumental in effectively combating financial crime.

Sonar goes beyond traditional anti-money laundering efforts to explore a wide range of financial applications, including correspondence banking. By harnessing AI capabilities, the AI tool comprehensively monitors these transactions, identifying patterns indicative of illicit activity.

Due to its relentless efforts in combating money laundering and other financial crimes, the company has experienced remarkable growth over the past two years. ThetaRay said its number of clients has grown more than 10x in the last two years, while existing customers have expanded at a staggering net dollar retention rate of over 180%, resulting in ARR growing over 5x. Some of its notable clients include Nigerian paytech firm VigiPay and UK open banking fintech Noda.

Devon Kirk, Partner and Co-Head of Portage Capital Solutions, commented on the latest funding, highlighting the company’s role in providing the necessary innovation to combat financial crimes.

“We know that Banks and FinTech 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,” said he.


ThetaRay Secures $57M to Strengthen AI-Powered Battle against Money Laundering

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