South African startup Orca Fraud has made waves with its recent announcement of securing $550,000 in its pre-seed funding round, with Norrsken22 leading the charge.
The landscape of fraud in South Africa has undergone significant evolution over the past five years, with both citizens and governmental bodies finding themselves in the crosshairs of cyber threats. In 2021 alone, South Africa ranked as the most cyber-attacked country in Africa and the third globally, as reported by an Interpol African Cyberthreat Assessment. The Southern African Fraud Prevention Service (SAFPS) further revealed a staggering 600% increase in fraud incidents between 2018 and 2022.
In response to this escalating threat, Orca emerged on the scene in January 2024, founded by Thalia Pillay and Carla Wilby. Positioned in Cape Town, Orca is dedicated to equipping analysts and compliance officers with the necessary tools to combat a variety of fraud types across emerging markets.
The recent pre-seed funding round, totaling $550,000, was met with enthusiastic investor interest, with Norrsken22 leading the round and additional participation from notable backers including First Circle Capital, Musha Ventures, Kara Ventures, as well as contributions from business angels, family, and friends. This infusion of capital will fuel Orca’s mission to develop tailored fraud prevention solutions and expand its all-female team.
Read also: South African AI-powered customer service platform Cue secures $2 million in funding.
Orca’s strategic focus revolves around providing effective and affordable cybersecurity solutions to financial institutions across Africa. The surge in fraud cases, exacerbated by the adoption of new payment technologies such as mobile money, cross-border payments, and e-wallets, underscores the critical need for scalable fraud prevention measures.
Recent high-profile cyberattacks, including the ransomware attack on the Development Bank of Southern Africa in May 2023, have underscored the urgency of bolstering cybersecurity defenses. Orca’s engagement with over 150 fraud professionals and fintech founders has highlighted the demand for targeted solutions tailored to the unique challenges of emerging markets.
Nivesh Pather of Norrsken22 emphasizes the importance of bespoke solutions in addressing the specific needs of the African market, stating, “The market needs a bespoke solution, rather than a retrofitted suite of tools that was built for global markets where the finance and regulatory infrastructure is different.”
Notably, Orca’s all-female founding team represents a rarity in both the African and global tech landscape. Thalia Pillay, CEO and co-founder of Orca underscores the significance of strategic investors who bring diverse expertise and support to the table, reflecting the company’s commitment to inclusive growth and innovation.
