Riskified begins trading on NYSE at $3.3b valuation

The Israeli e-commerce fraud protection company is raising $363 million and an additional $55.1 million, if the underwriters exercise their options.

Israeli e-commerce fraud protection platform company Riskified begins trading today on the New York Stock Exchange, at a company valuation of $3.3 billion. Riskified becomes the 10th Israeli tech company (not including SPAC mergers) to hold an IPO on Wall Street in 2021.

Yesterday, the company priced 17.3 million shares at $21 per share, above the previously announced range of $18-$20. Riskified is raising $363 million, which could grow by an additional $55.1 million, if the underwriters exercise their options within 30 days at the IPO price.

At the same time, Riskified cofounder and CTO Assaf Feldman is selling 200,000 shares for $4.2 million. After the IPO, he will hold shares worth $283 million and cofounder and CEO Eido Gal will hold shares worth $287 million. Other major shareholders include Genesis, General Atlantic, Qumra, Pitango, Fidelity and Entrée Capital.

Riskified has developed a platform based on artificial intelligence, which according to the company allows merchants selling online to immediately and precisely distinguish between legitimate and fraudulent customers and thus reduce costs and risks. Riskified’s core product Chargeback Guarantee automatically approves or blocks online transactions.

Riskified’s business model is to collect a percentage-based fee on gross merchandize value (GMV). In the second quarter of 2021, Riskified expects revenue of $54.8-$55.7 million, up 46% from the corresponding quarter of 2020. Gross profit in the second quarter is expected to be $30.1-$33.7 million, up from $20.1 million in the corresponding quarter of 2020, while the operating loss is predicted to be between $900,000 and $5.5 million, narrowing from $7.7 million in the second quarter of 2020. Net loss in the second quarter of 2021 is expected to be $19.4-$24.8 million compared with $7.3 million in the corresponding quarter of 2020.

Riskified will trade on the NYSE under the RSKD ticker. Goldman Sachs, J.P. Morgan and Credit Suisse Securities (USA) are acting as lead book-running managers for the offering. Barclays Capital, KeyBanc Capital, Piper Sandler, Truist Securities, and William Blair are joint book-running managers and Loop Capital Markets, Samuel A. Ramirez & Company, Siebert Williams Shank & Co.,and Stern Brothers & Co. are acting as co-managers.


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