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Quavo’s AI-Driven Platform Secures 0M to Tackle Growing Financial Fraud Quavo’s AI-Driven Platform Secures 0M to Tackle Growing Financial Fraud

Quavo’s AI-Driven Platform Secures $300M to Tackle Growing Financial Fraud

Quavo’s AI-Powered Platform Grabs $300M To Combat Mounting Financial Fraud

Fraud and dispute management provider Quavo has secured $300 million from private investment firm Spectrum Equity. At the same time, prior investor FINTOP Capital is selling its stake. Significant shareholders after the departure will include Pegasystems and four executives who founded the company.

The Wilmington, Delaware fintech sells software-as-a-service products that “automate and manage fraud and dispute management for financial institutions.” According to the company, it processes over 12.5 million customer disputes annually for a broad spectrum of financial institutions, including global issuers, credit unions and regional banks, and says its revenue has grown 60% annually since 2022 and 100% in the last year.

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The capital infusion follows an initial seed round in 2020 and three Series A rounds between 2021 and 2023, totaling $11 million. Actual cash raised in the seed round was not undisclosed.

“Quavo is uniquely positioned to drive automation benefits and better outcomes in this space,” said Spectrum Equity Managing Director Adam Margolin. “Quavo’s highly configurable platform, scaled transaction data powering its decisioning engine, and mission-driven approach to solving costly and time-consuming problems for its clients set the company apart.”

Quavo’s QFD automates the investigation of credit card chargebacks and other conflicts through the dispute lifecycle,  from intake and investigation to chargeback and client communication workflows. KeyCorp (NYSE:KEY) is listed as one of Quavo’s more than 50 direct customers, along with Associated Banc-Corp (NYSE:ASB) and First Hawaiian Bank (NYSE:FHB).

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The company says its software works across all payment methods and dispute types, offering “easy customization through a decisioning engine and library of third-party API” add-ons. The company also markets a fully managed service called Dispute Resolution Experts, staffed by a team of fraud specialists. This program allows greater flexibility for clients, at a higher cost, while also applying QFD technology for fraud and dispute resolution.

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“We are thrilled to be partnering with Spectrum Equity on the next chapter of growth,” said Quavo cofounder and CEO Joseph McLean, who started the company in 2016. He added the investment will be used to “accelerate our AI-led product development initiatives and expand our go-to-market and client success teams to meet growing market demand and drive exceptional client outcomes.”

Quavo says it is leveraging advanced AI to tackle rising fraud threats in 2025 and breaks down this initiative into four related projects:

  • Using investigative AI to detect differences between first-part fraud and true fraud.

  • Streamlining complex and repetitive processes using large language models.

  • Automating tasks like accountholder correspondence and the evidence that merchants need to provide when disputing a chargeback.

  • Enhancing call center intake that’s powered by generative AI.

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Quavo says its tech automates approximately 80% of the tasks and interactions typically undertaken by clients in a customer dispute while recapturing 85% of “potentially lost disputed funds.” It says clients benefit from improved outcomes, posting an average 37% reduction in write-offs, while reducing days to issue consumer credit dropping to less than one from 11.

“Our vision to restore financial trust and simplify fraud and disputes is unwavering, concludes McLean, “and this partnership allows us to achieve these goals faster and at even greater scale.”

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This article Quavo’s AI-Powered Platform Grabs $300M To Combat Mounting Financial Fraud originally appeared on Benzinga.com

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