After making the e-commerce splash by launching a website to host the products of its many fashion brands, French luxury goods conglomerate LVMH Moët Hennessy Louis Vuitton is upping the ante ever further, investing in Riskified, an e-commerce fraud prevention startup. LVMH, which owns Louis Vuitton, Celine, Loewe, Givenchy, and Pucci, among other brands, joins investors, including Capital One Financial Corp, in contributing a total of $33 million in new funding round.
Per Reuters, “Riskified, whose clients include U.S. retailers Macy’s and Foot Locker Inc, said it would use the funds to expand globally and accelerate sales of its software, which helps merchants spot online payment fraud and reduce false alarms that cause genuine buyers to be turned down.”
“As more and more consumers move their shopping online, the fraudsters follow,” Riskified co-founder and Chief Executive Eido Gal said in an emailed response to questions by Reuters. “The market for our service is big and getting bigger.”
Tel Aviv, Israel-based Riskified plans to increase its focus on the U.S. market, where many of its merchants are based, Gal said. He described Riskified’s investors as strategic partners, but declined to say whether companies owned by Groupe Arnault – the Arnault family fund that controls LVMH – will be using its technology.