Orca, a South African startup that works with banks and fintechs in emerging markets to fight various types of fraud, has raised a $550,000 pre-seed round.
The round was led by Norrsken22 with participation from First Circle Capital, Musha Ventures, Kara Ventures as well as several strategic business angels and family and friends.
South Africa has seen a 600% increase in reported fraud cases since 2018 (SAFPS, 2022). In addition to this greatly increasing volume, it’s becoming increasingly more difficult to effectively identify and prevent at scale. The rise and growing adoption of new payment methods (Payshap, mobile money, cross border payments, e-wallets etc) has resulted in new avenues for syndicates to execute large-scale fraud, often enabled by instant settlements.
Orca plans to use this capital injection to build simple, yet effective fraud prevention tools and iterate with customers in South Africa.
“It has been incredibly useful establishing a network far beyond South Africa where we’re able to connect with fraud players in other markets. There are so many parallels between the types of fraud that we see in various emerging markets. There’s so much fraud to fight that it really is a team effort. As we always say, we named ourselves Orca because orcas band together to take down boats. Looking forward to collaborating with our peers to take down fraudsters” Thalia Pillay, co-founder of Orca, said.
Using the funding raised, Orca plans to also expand its team and build, validate and iterate on their fraud and compliance products.
“We are excited about the strategic investors we have onboard, who can provide us with various types of support we are looking for at this early-stage. We aimed to have a diverse cap table that reflects where and how we plan on growing the business. Most of our investors are builders themselves who have successfully navigated B2B and fraud spaces which makes them especially relevant to us.”Thalia Pillay, co-founder of Orca, added.
Orca was founded by an all-female founding team. All-women founding teams in the world, but especially Africa are rare. Between 2019 and 2022, data from “Africa: The Big Deal” shows that on average only 1% of funding went to female-only founding teams or solo female founders. However, this duo aims to disrupt the male-dominated landscape that are startups and ensure they reach the growth phases where dropoff typically occurs by being lean, resourceful and agile.
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