Scalarr Raises $7.5M to Combat Mobile Ad Fraud

Scalarr Secures $7.5 Million in Series A Funding to Advance Ad Fraud Prevention

Scalarr, a company leveraging machine learning to address ad fraud, has announced the completion of a $7.5 million Series A funding round.

Founding and Origins

The company was established by Inna Ushakova, serving as CEO, and Yuriy Yashunin, the CPO. Both previously held leadership positions at the mobile marketing agency, Zenna.

Ushakova explained that during their time at Zenna, they observed a significant escalation in ad fraud, which began to seriously jeopardize their business operations.

From Agency to Technology

Existing anti-fraud solutions proved inadequate, prompting the team to develop their own proprietary technology. Ultimately, Zenna was dissolved, with the entire team transitioning to focus solely on Scalarr.

Scalarr’s Product Suite

Scalarr offers a range of products designed to combat fraudulent activity. These include AutoBlock, which proactively identifies fraud prior to ad bidding, and DeepView, a solution tailored for adtech platforms such as ad exchanges, demand-side platforms, and supply-side platforms.

Performance and Machine Learning

The company claims a 60% higher fraud detection rate compared to current market offerings. In 2020, Scalarr reportedly helped its clients recover $22 million in fraudulent ad spend.

This success is largely attributed to the company’s extensive implementation of machine learning techniques, according to Ushakova.

The Limitations of Traditional Approaches

While larger ad attribution companies are incorporating anti-fraud features, Ushakova notes that these are not their primary focus.

Historically, fraud detection has relied on a “rules-based approach,” identifying suspicious behaviors. However, this method struggles to keep pace with the evolving tactics of fraudsters.

An Ongoing Battle

“Fraud is constantly changing,” Ushakova stated. “It’s a continuous cycle, much like a game of cat and mouse, where fraudsters consistently stay one step ahead.”

She further explained that machine learning’s predictive capabilities are crucial. “Only ML can help anticipate the next move, and it allows for the detection of anomalies that haven’t been previously categorized.”

Following anomaly detection, the company’s analytics team assesses the statistical significance of these irregularities.

Investment and Future Plans

The Series A funding round was spearheaded by the European Bank of Reconstruction and Development, with contributions from TMT Investments, OTB Ventures, and Speedinvest.

The capital will be allocated to expanding Scalarr’s presence in the Asian market and furthering product development efforts.