Fraudio has raised a funding round led by Alea Capital Partners to expand internationally and develop its AI fraud detection technology.
The company stated that the funds will support its international expansion and the continued development of its AI-based fraud detection technology.
The growth of instant payments, digital wallets, and real-time transfers has increased demand for fraud detection systems capable of operating within milliseconds. Fraudio's platform applies ML and behavioural analytics to identify suspicious activity during transaction processing, with the stated aim of reducing fraud losses while limiting false declines for legitimate users. Furthermore, the company said its technology is designed for use by financial institutions, fintech companies, and payment platforms seeking to monitor transactions in real time.
João Moura, founder of Fraudio, said the funding round is intended to support scaling efforts, including expansion of the commercial team to build sales and partnership capacity, while continuing investment in product development. It was also noted that the company, founded in Portugal, aims to build a global presence in fraud prevention.
Representatives from Alea Capital Partners and IMGA said the investment reflects confidence in Fraudio's growth trajectory and its AI-driven, plug-and-play fraud prevention approach. According to the financial institutions, Fraudio has recently strengthened its sales processes, launched new product components, including a Rules Library, and added clients such as GnosisPay and PayTabs.
Planned developments and regulatory context
Over the next 12 to 18 months, Fraudio plans to expand its detection capabilities to address emerging fraud typologies, including mule account networks and fast-spend behavioural attacks. The company also said it is working to strengthen partnerships with payment service providers, digital banks, and payment platforms to support adoption in new markets.
Fraudio continues to base its core engineering and product development in Portugal, operating within EU regulatory frameworks including PSD2 and SEPA Instant, and in line with evolving European Banking Authority guidelines. The company said this regulatory environment forms part of its approach as it expands its operations into other markets.
For payment providers and financial institutions, the company said the technology is intended to reduce fraud-related losses and reduce the operational burden associated with disputes and chargebacks. At the same time, for end users, Fraudio said the goal is to lower the rate of legitimate transactions being incorrectly declined, particularly on instant and real-time payment rails where decisions are made within milliseconds.
The funding round follows a period of growth for Fraudio, which the company has attributed to capital-efficient expansion and increasing demand for fraud prevention tools suited to real-time payment environments.
