Paris-based SMS verification technology company Prelude has secured $8 million in seed funding led by Singular and Seedcamp. The company, founded in 2022 by Matias Berny and Quentin Le Bras, develops fraud-resistant SMS verification APIs for businesses, addressing a growing challenge in digital identity verification and user authentication.
The founders, who previously worked at Zenly (acquired by Snap Inc. in 2017), created Prelude after identifying significant inefficiencies in SMS verification processes, including fraud rates that consumed up to 30 percent of SMS budgets. This problem has become increasingly significant as traditional SMS-based authentication faces mounting security challenges from sophisticated fraud techniques.
The company’s “smart broker” model represents an innovative approach to verification security, connecting businesses directly with mobile network operators while optimizing message routing costs. This technology addresses common vulnerabilities in SMS verification systems, such as SIM swapping and intercepted messages, which have prompted many organizations to seek more secure alternatives.
Prelude’s technology has demonstrated significant results for its clients, with reported average reductions in verification costs of 40 percent and achievement of 95 percent conversion rates on verification messages. The company’s client base includes enterprise customers across social services, finance, travel, retail, and food technology sectors, with notable partners including BeReal, Locket, Alma, and Bitstack.
“We’re determined to tackle SMS fraud at its core and use our experience to go beyond SMS verification,” stated Matias Berny, Founder and CEO of Prelude. “Onboarding conversion is one of the toughest challenges in driving growth, and that’s the problem we aim to solve for our customers.”
Henri Tilloy, Partner at Singular, commented on the investment: “Prelude is transforming the phone verification and authentication space. Its practical solution offers a great developer experience, delivering immediate and tangible value by helping businesses cut costs, enhance fraud protection and improve conversation rates — all with just a single line of code.”
The new funding will support Prelude’s global expansion efforts, particularly in Europe and North America, and enable the development of new mobile-first onboarding services aimed at helping businesses verify, onboard, and retain users more effectively. This expansion comes at a time when businesses are increasingly seeking robust authentication solutions that balance security with user experience, as evidenced by the growing adoption of various digital identity verification methods.
Source: Tech.eu
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