Israeli AI fintech startup, ThetaRay, raised $57 million in a Series E funding round led by Portage Capital (Portage), a global fintech and financial services investment platform founded by Canadian billionaire Paul Desmarais III. The round also saw participation from existing investors, including Jerusalem Venture Partners (JVP) and OurCrowd. The investment aims to fuel ThetaRay’s international expansion and cater to increasing market demand for next-generation financial crime detection solutions.

The startup has seen a tenfold customer increase in the last two years and a net dollar retention rate of over 180%, resulting in more than a 5x growth in annual recurring revenue (ARR).

The traditional financial system has increasingly become risk-averse, affecting global trade and leading to a 40% reduction in global interbank corridors. ThetaRay’s solution aims to reverse this trend, facilitating financial inclusion and business growth across various industries and regions.

Utilizing proprietary and patented Machine Learning (ML) technology, ThetaRay’s cloud-based transaction monitoring solution, SONAR, helps banks and fintech companies ensure safer and faster international transactions. The technology reduces false positives and improves high detection rates, thereby reducing compliance costs and increasing risk coverage. The technology has attracted a diverse client base including major financial institutions like Santander, Travelex, Mashreq Bank, MFS Africa, and ClearBank.

ThetaRay’s last funding round was almost two and half years ago, when it raised $31 million for its series D funding round from returning investors like JVP, OurCrowd. The latest round brings the startup’s total funding raised to $117 million (StartupHub.ai data). The startup was founded in 2012 by Mark Gazit, Ronald Coifman, and Amir Averbuch.

ThetaRay recently named Peter Reynolds as its new CEO, previously held by Gazit, following his role in leading the company’s revenue growth as Chief Revenue Officer.