Quavo, a cloud-based software company focused on automating fraud and dispute processes for financial institutions, has secured a $300 million investment from Spectrum Equity. Founded in 2016 by former Bank of America fraud systems architects, Quavo has grown rapidly, now handling more than 12.5 million consumer disputes per year. Its flagship product, QFD, automates over 80% of dispute resolution tasks and enables clients to recover 85% of potentially lost funds. On average, clients report a 37% reduction in write-offs and cut credit issuance time from 11 days to under one. This new capital will allow Quavo to scale its platform further, enhance its AI-driven decisioning engine, and expand its managed service offering, Dispute Resolution Experts.
With growing pressure on financial institutions to resolve transaction disputes quickly and in compliance with regulations, Quavo's model has gained traction across banks, credit unions, and fintechs. CEO Joseph McLean noted the new funding will support “AI-led product development initiatives” and strengthen go-to-market and client success efforts. Spectrum Equity’s Managing Director Adam Margolin said Quavo’s “mission-driven approach” and use of scaled transaction data position it as a clear leader in this niche. As part of the deal, early investor FINTOP Capital has exited, while Pegasystems and the founders remain shareholders. The deal was advised by KeyBanc Capital Markets and legal teams from Goodwin Proctor and Latham & Watkins.
