Prelude's Bold Leap: $8M Seed Funding to Combat SMS Fraud

November 13, 2024, 3:43 pm
Prelude
Total raised: $8.07M
Prelude, a Paris-based startup, is on a mission. With $8 million in seed funding, they aim to revolutionize SMS verification. Founded in 2022 by Matias Berny and Quentin Le Bras, Prelude is not just another tech company. It’s a beacon of hope in the murky waters of digital fraud.

The funding round, led by Singular and Seedcamp, is a strategic move. Prelude plans to expand its reach across Europe and North America. The goal? To enhance its offerings with mobile-first onboarding services. This is more than just a financial boost; it’s a launchpad for innovation.

Prelude’s technology is built on a simple premise: reduce costs while increasing security. The startup provides a unified API platform that streamlines SMS verification, onboarding, and user engagement. In a world where fraud is rampant, Prelude acts as a guardian. It protects user accounts with a robust system that has already safeguarded over 100 million accounts across 230 regions.

The founders’ journey began at Zenly, a location-based social network. There, they faced the harsh reality of high SMS verification costs. Up to 30% of their budget was lost to fraud. This experience ignited a fire in them. They decided to create a solution that would not only tackle these issues but also empower businesses to thrive.

Prelude’s platform is a game-changer. It acts as an independent broker, identifying cost-effective routing options. This innovation reduces verification costs for clients by an average of 40%. In an industry where every penny counts, this is a significant advantage. Businesses can now allocate resources more efficiently, focusing on growth rather than grappling with fraud.

The startup’s clientele is diverse. Prelude serves enterprise customers across various sectors, including social services, finance, travel, retail, and food technology. Notable partnerships include companies like BeReal, Locket, Alma, and Bitstack. Each collaboration is a testament to Prelude’s versatility and reliability.

One of the standout clients is Sunday, a global payment solution for restaurants. Their CTO, Arnaud Lemaire, highlights the transformation Prelude has brought to their messaging strategy. With Prelude, Sunday can send one-time passwords (OTPs) worldwide effortlessly. They now have full visibility into deliverability and conversion rates. This level of transparency is crucial in today’s fast-paced digital landscape.

But Prelude is not stopping at SMS verification. The company is determined to tackle onboarding conversion, a significant hurdle for many businesses. The founders understand that user trust and retention are paramount. They are building new services to help clients master these challenges. This forward-thinking approach positions Prelude as a leader in the industry.

The fresh capital will fuel further innovation. Prelude plans to broaden its services beyond one-time password verification. The focus will be on enhancing mobile-first onboarding tools. This is a strategic move, as businesses increasingly seek seamless user experiences. Prelude aims to empower companies to streamline user verification, onboarding, and engagement.

In a world where digital interactions are the norm, security is non-negotiable. Prelude’s commitment to combating SMS fraud is commendable. They are not just another tech startup; they are a shield against the rising tide of digital threats. Their proactive approach to fraud prevention, real-time analytics, and smart routing across 30+ carriers and channels sets them apart.

As Prelude embarks on this new chapter, the industry watches closely. The startup’s journey is a reminder that innovation often springs from necessity. The founders’ experiences at Zenly shaped their vision. Now, they are poised to make a significant impact on the digital landscape.

In conclusion, Prelude’s $8 million seed funding is more than just a financial milestone. It’s a declaration of intent. The startup is ready to take on the challenges of SMS fraud head-on. With a strong foundation, a clear vision, and a commitment to innovation, Prelude is set to redefine the standards of user verification and onboarding. The future looks bright for this Parisian startup, and the digital world is better for it.