- Fraud and dispute process management innovator Quavo Fraud & Disputes has raised $300 million in funding from Spectrum Equity.
- Quavo said it will use the capital to support further investment in the company, drive innovation, and create value for its customers.
- Quavo Fraud & Disputes most recently demonstrated its technology at FinovateSpring 2025 in San Diego.
Quavo Fraud & Disputes has announced a $300 million investment from growth equity investment firm Spectrum Equity. Quavo, which provides cloud-based solutions to enable financial institutions to automate and manage fraud and dispute processes, will use the capital to accelerate investments throughout the business, drive innovation, and create even greater value for customers.
“We are thrilled to be partnering with Spectrum Equity on the next chapter of growth at Quavo,” company Co-Founder and CEO Joseph McLean said. “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 and drive exceptional client outcomes. Our vision to restore financial trust and simplify fraud and disputes is unwavering, and this partnership allows us to achieve these goals faster and at even greater scale.”
Quavo’s technology empowers financial institutions—from large banks to credit unions—to better manage the consumer transaction dispute process. The company’s flagship offering, QFD, automates intake, investigation, chargeback, recovery, and client communications workflows across all payment and dispute types. Financial institutions using Quavo’s technology have been able to automate as much as 80% of the tasks involved in resolving typical consumer disputes, and recapture 85% of potentially lost funds. The average Quavo customer has experienced a reduction of 37% in write-offs and was able to reduce the time it took to issue consumer credit from 11 days to one day.
“Fraud and dispute management is a massive business-as-usual problem for financial institutions and fintechs alike, and we believe that Quavo is uniquely positioned to drive automation benefits and better outcomes in this space,” Spectrum Equity Managing Director Adam Margolin said. “Quavo’s highly configurable platform, scaled transaction data powering its decisioning engine, and mission-driven approach to solving costly and time-consuming problems for its clients set the company apart.”
As part of the transaction, existing investor FINTOP Capital will sell its ownership stake in the company. Quavo’s co-founder and strategic investor and technology partner Pegasystems will continue as significant shareholders.
Headquartered in Wilmington, Delaware, Quavo has recovered more than $1.4 billion for 10.8+ million victims. The company has grown revenues 60% annually since 2022 and today automates more than 12.5 million consumers disputes a year. Quavo serves a broad range of financial institutions, from global issuers and fintechs to regional banks and credit unions. Founded in 2016, Quavo Fraud & Disputes made its Finovate debut at FinovateFall 2024 in New York and returned to the Finovate stage the following year for FinovateSpring in San Diego.
Earlier this year, Quavo published a report showing the impact of fraud resolution on customer loyalty. Quavo’s Q4 2024 Consumer Survey analyzed feedback from 1,000 recent victims of credit card fraud to learn about their experiences and how their experiences may have impacted their sense of trust and brand loyalty. The survey revealed that the quality of the fraud resolution process had a greater impact on trust than the actual fraud itself, and that the fraud resolution experience has a ripple effect on customer trust in other banking services.
“Trust is a bank’s most valuable asset, and fraud resolution is a defining moment in the customer relationship,” McLean said. “Our research proves that a seamless, transparent, and timely fraud resolution process isn’t just about compliance; it’s about building trust that strengthens long-term customer relationships.”
