The newly acquired funds will be used to expand operations into North America and invest in research and development in AI, cybersecurity, and deep tech to formulate filters that will help detect advertising fraud
The startup, founded in 2020 by Deepankar Biswas and Raja TN, previously raised $200,000 in a seed round in 2021 from Alacrity India, Limelight UK, and ThinkNext LLC
ClearTrust claims to enhance ROI for advertisers, agencies, and networks by eliminating fraudulent and fake activities from digital campaigns
Fraud detection startup ClearTrust has raised pre-Series A funding of $1.9 Mn (INR 15.7 Cr) led by Ideaspring Capital, with participation from Piper Serica Angel Fund and existing backer Alacrity India.
The company plans to use the fresh funds to expand operations into North America and invest in research and development in AI, cybersecurity and deeptech to formulate filters that will help detect advertising fraud.
ClearTrust, founded in 2020 by Deepankar Biswas and Raja TN, claims to enhance ROI for advertisers, agencies, and networks by eliminating fraudulent and fake activities from digital campaigns. It also aids digital publishers in real-time protection of their ad revenues from fake and invalid traffic.
The platform offers comprehensive security solutions, including traffic scanning, precise tracking, and a real-time dashboard equipped with over 140 traffic scoring filters, system alerts, and customer-centric features.
It aims to hit revenue of $10 Mn (approximately INR 83 Cr) by 2027.
In 2021, the startup raised $200,000 in a seed funding round from Alacrity India, Limelight UK, and ThinkNext LLC.
Raja TN said, “The rapid growth of ad inventory and outpacing demand has made digital advertising a breeding ground for cyber criminals to exploit unused spaces with deceptive ads. Programmatic media traders are particularly vulnerable, often hindered by complex and costly anti-fraud technologies, leading to a trust deficit with advertisers.”
“Our ambition is to pioneer paradigm shifts, particularly in combating ad fraud, a challenge that plagues the digital advertising space globally. With a keen focus on expanding into the US market, this funding propels us towards innovating and implementing solutions that ensure the integrity and efficiency of online advertising,” Biswas said.
Abhay Agarwal, founder of Piper Serica Angel Fund, said, “Ad frauds are an escalating threat to the advertising industry that cost advertisers about $100 billion in 2023 as per various reports. The loss to the ad industry is expected to double by 2028, and we feel ClearTrust has created some cutting-edge technologies to tackle these challenges.”
“We expect the company to be a global player in the next 2-3 years, helping large multinational companies run safe advertising and digital campaigns profitably and with increased ROI. This investment fits perfectly in our strategy of investing in technology companies that are building world-class products for the global customers.”
Fraud detection space in India has started gaining interest from investors lately as enterprises have turned digital, with the Covid-19 pandemic further accelerating this shift. However, cyber frauds have emerged as a major risk and companies must take measures to prevent such frauds. As per reports, damages caused by cyber frauds could cost $1 Tn on an annual basis by 2025.
For instance, in July last year, fraud detection startup Bureau bagged an additional $4.5 Mn as part of its Series A funding round. Early stage VC firm GMO Venture Partners and other existing investors participated in this round, taking the startup’s total Series A round to $16.5 Mn.
