AdvaRisk, an ICICI Bank-backed fraud detection startup, is in discussions to raise $20-25 million in a funding round that includes investors such as Nandan Nilekani-led Fundamentum. The round, expected to close within 15-20 days, will involve both primary capital infusion and secondary share sales, with existing investors like Sprout Venture Partners and SEA Fund planning to exit, according to livemint.com.
The funding round aims to bring in fresh capital while providing liquidity to early backers. Fundamentum, known for its investments in technology-driven companies, is among the key participants showing interest. The deal structure includes a mix of new equity and secondary transactions, allowing current investors to partially exit their positions. This approach reflects a maturing startup ecosystem where early investors seek returns as companies scale.
This round follows Fundamentum's recent investments in startups such as Fundamentum itself, highlighting its growing footprint in India's fintech and fraud detection sectors. The infusion of $20-25 million will enable AdvaRisk to expand its technology and market reach amid rising demand for fraud prevention solutions. Comparable deals in the sector have seen similar investor exits paired with fresh funding, signaling confidence in the startup's growth trajectory and the broader market opportunity.
The round is scheduled to close by early October, with the final amount and investor composition to be disclosed post-closing. This funding milestone marks a key phase for AdvaRisk as it balances growth capital needs with early investor exits, positioning the company for its next stage of development.