WILMINGTON, DE — Quavo, Inc. announced a $300 million investment from growth equity firm Spectrum Equity. The funding aims to accelerate product innovation, expand market reach, and deepen the company’s AI capabilities.
Founded in 2016 by former Bank of America engineers, Quavo has emerged as the category leader in end-to-end dispute resolution software, addressing a persistent operational burden for banks, credit unions, and fintechs. The company’s platform, QFD, automates approximately 80% of the tasks involved in handling consumer transaction disputes and helps financial institutions recover around 85% of potentially lost funds.
Quavo’s solution streamlines intake, investigation, chargeback, recovery, and communication workflows across all payment types, while ensuring regulatory compliance. Clients typically see a 37% reduction in write-offs and cut the average time to credit a customer from 11 days to less than one.
In addition to its software platform, Quavo offers Dispute Resolution Experts (DRE), a managed service combining its technology with human support. This allows institutions to offload the entire dispute resolution process without sacrificing speed or accuracy.
CEO and Co-founder Joseph McLean said the funding will be used to advance AI-led product development and expand go-to-market and client success teams to meet growing demand. “Our vision to restore financial trust and simplify fraud and disputes is unwavering,” McLean said. “This partnership allows us to achieve these goals faster and at even greater scale.”
Quavo has been on a strong growth trajectory, with revenues increasing 60% annually since 2022. The platform now processes more than 12.5 million consumer disputes per year, serving clients across the spectrum—from global issuers to regional banks and credit unions.
Spectrum Equity Managing Director Adam Margolin emphasized the scale of the market opportunity. “Fraud and dispute management is a massive business-as-usual problem for financial institutions and fintechs alike,” he said. “Quavo’s highly configurable platform and data-powered decisioning engine set it apart.”
As part of the transaction, early investor FINTOP Capital will exit its stake. Strategic investor Pegasystems and Quavo’s co-founders will retain significant equity positions. Specific terms of the deal were not disclosed.
KeyBanc Capital Markets acted as financial advisor to Quavo, with legal counsel from Goodwin Procter. Latham & Watkins advised Spectrum Equity.
With fresh capital and a sharpened focus on AI and automation, Quavo is positioning itself to further transform the complex world of dispute resolution for financial institutions—and scale its impact across the evolving landscape of digital finance.
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