Quavo, a dispute management software provider founded by former Bank of America execs, has secured a $300 million growth equity investment from Spectrum Equity. As part of the transaction, existing investor FINTOP Capital is selling its ownership stake in the US-based company.
FINTOP previously led a Series A financing round for Quavo in November 2021 which saw the company raise $6 million.
Following this transaction, Pegasystems will remain a significant shareholder in the company, alongside co-founders David Chmielewski, Daniel Penne, Richard Jefferson, and Joseph McLean, who serves as CEO.
Founded in 2016, Quavo specialises in Software-as-a-Service (SaaS) solutions that automate and manage fraud and dispute management for financial institutions, including KeyBank in Ohio. Its flagship product, QFD, automates the dispute lifecycle end-to-end, handling intake, investigation, chargeback, recovery, and client communication workflows. The solution works across all payment methods and dispute types, and is fitted with a decisioning engine and library of third-party API integrations.
Quavo also offers a fully managed service called Dispute Resolution Experts (DRE), which is based on its QFD technology, and is designed for clients who prefer not to manage disputes in-house or rely on a third-party outsourcer. The company claims to currently process over 12.5 million consumer disputes annually, typically recapturing 85% of potentially lost disputed funds.
“With this new investment, we intend to accelerate our AI-led product development initiatives and expand our go-to-market and client success teams to meet growing market demand,” comments McLean. “This partnership [with Spectrum] allows us to achieve these goals faster and at even greater scale.”
Source: https://www.fintechfutures.com/
