Tackling online brand abuse and fraud, Barcelona-based Red Points has just picked up €20 million to help achieve its goal of profitable global growth. The startup has been pioneering a movement to keep the internet safe for brands and has also recently achieved B-Corp status for its work.
It’s said that we are in the midst of an online fraud boom. Indeed, brands and companies are continually coming up against brand fraud and emerging forms of threats and the increased digitalization of society and the economy have doubtlessly accelerated both the variety of these issues and the incidence of them. According to players in the market, online fraud and counterfeit goods are currently costing the global economy hundreds of billions of euros every year.
Born in Barcelona, Red Points has been operating since 2014 to protect clients against the dangers facing online brands. It counts famous names like Hugo Boss and Real Madrid as clients, helping them tackle digital counterfeiting. Now, the startup has secured fresh capital to keep growing as demand for protection against online fraud and brand abuse continues to escalate worldwide.
- €20 million led by IRIS VC
- Existing investors Summit Partners and Eight Roads also contributed
- Brings Red Points’s total funding to date to over €76 million. Previous investors include Mangrove, Northzone and Banc Sabadell.
Laura Urquizu, Red Points’ CEO & President, said: “The OECD estimates that counterfeit goods cost the global economy over €450 billion a year, and this is just one of many rising threats that brands and consumers face in digital. Red Points enables companies to bring back revenue and brand equity lost to fraud, and this new funding will help us accelerate the adoption of the technologies that make it happen effectively.”
Countering online brand abuse
Red Points’ aim is to recover digital revenue. Its SaaS platform is used by brands to fight counterfeits, privacy, impersonation and distribution abuse. It works by scanning the internet to automatically fund and take down these online attacks that are stealing revenue from brands. The Revenue Recovery Platform offers robust online brand protection, providing visibility across online marketplaces, social media, websites, apps, and NFT platforms.
In the last 12 months, the total value of counterfeit listings taken down by Red Points surpassed €1.7 billion – showing that there really is a need for such a product.
Itziar Estevez Latasa, Partner at IRIS: “Companies are struggling to catch up with the explosion of brand fraud and emerging forms of threats. With its unique automated and highly scalable platform, Red Points is leading the digitalization of the anti-fraud space. We’ve been impressed with Red Points’ ability to address customers’ needs across industries by focusing on the most harmful infringements and untapping hidden fraudulent networks. We are very proud to be part of this journey.”
The SaaS solution works automatically on behalf of brands, operating on a 24/7 basis, giving companies greater security in this online and digital world. As demand for the product keeps growing, the Barcelona-founded startup is now focused on profitable growth and has now reached over 1000 corporate clients with employees based in Europe, North America and Asia.
Last month, Red Points also became a certified B Corp company, an exclusive distinction that recognizes an organization’s rigorous social and environmental standards and its commitment to inclusion, equity, and regenerative initiatives. Through its fight against fraudulent commerce and fraud, Red Points advocates for a more just, safe, and sustainable digital world.
According to CEO Laura, this commitment to band protection is the core aim and will continue to be so.
Urquizu: “Our north star is to make the Internet a safer place for brands and consumers, and I could not ask for a more committed team to keep advancing towards this objective. The way in which we implement our mission is also core to us, with values like sustainability, respect, diversity, and transparency.”