Scalarr raises $7.5M to fight mobile ad fraud – TechCrunch

Shout, A startup that says it uses machine learning to combat ad fraud, is announcing that it has raised $ 7.5 million in Series A funding.

The company was founded by CEO Inna Ushakova and CPO Yuri Yashunin, who previously led mobile marketing agency Xena. Ushkova told me that while living in Xena, she felt that advertising fraud had increased to such an extent that it posed a real threat to her business.

At the same time, the team was not affected by any existing anti-fraud solutions, so it built its technology. Eventually, they completely shut down Xena and take the entire team on the scalar.

The startup’s products include Autoblock, a fraud detection prior to an advertiser’s bids on an ad, and DeepView, which is used by EdTech platforms (including ad exchanges, demand-side platforms, and supply-side platforms) is.

Scalar says it can detect 60% more fraud than existing products on the market and it saved its customers $ 22 million in advertising fraud refunds in 2020. Ushkova largely attributed this to the startup’s widespread use of machine learning technology.

He said that while large advertising attribution companies are adding anti-fraud products, they are not focusing. And historically, companies have tried to detect fraud through a “rules-based approach” where there is a list of behaviors that suggest fraudulent activity – but no matter how quickly they Rules make it hard to keep up with fraudsters.

“Fraud is ever evolving,” Ushkova said. “It’s like a Tom and Jerry game, so they’re ahead of you and we’re trying to catch them.”

For why machine learning is so much more effective, she said, “Only ML can help you predict the next step, and with ML, you need to be able to detect abnormalities that are not classified. Just after that, our analytics should take a look at those abnormalities and decide if there are some significant statistical significance. “

Scalars Series A led by the European Bank of Reconstruction and Development with participation from TMT Investments, OTB Ventures, and SpeedInvest. Among other things, the company will use the funds to expand its presence in Asia and develop products.