E-Commerce Fraud Protection Provider ‘Signifyd’ Secures $56M Led by Bain Capital
The company will use the funds to double its engineering headcount and expand its intelligent machine-learning platform to eliminate fraud-related charge backs
Photo Credit : signifyd.com,
Anti Fraud Startup Signifyd Raises $56M in Series C
Signifyd, the world’s largest provider of guaranteed fraud protection for e-commerce businesses, today announced it has secured 56 million dollars in series C financing led by Bain Capital Ventures, with additional participation from Menlo Ventures, American Express Ventures and other existing investors. This latest round of funding will be used to expand its teams of engineers and world class fraud experts and scale its machine learning-enabled Guaranteed Fraud Protection for enterprise merchants across the US, Europe and Asia.
For growing e-commerce companies and brick-and-mortar retailers migrating online, traditional fraud detection has become both ineffective and inefficient. Signifyd pioneered the Guaranteed Fraud Protection offering which provides a 100 percent financial guarantee against fraud or chargebacks on every approved order, thereby shifting liability for fraud away from e-tailers. With the surge in online fraud following the deployment of EMV, e-tailers are turning to scalable third party experts to eliminate fraud losses, especially for orders being shipped overseas and for increased sales volume during the peak holiday season. As Signifyd is only paid on orders it approves, e-tailers get the additional benefit of accepting more orders they had previously turned away due to fear of fraud.
“Our rapid growth has been made possible by our customers’ ability to scale, enter new markets and accept orders their competitors have turned away,” explained Signifyd cofounder and CEO, Rajesh Ramanand. “E-commerce is fiercely competitive and we see a whole new wave of competition arriving in the form of brick-and-mortar retailers shifting their focus online. In this environment, merchants are seeking a fully predictable cost for fraud that can eliminate liability and free up internal resources to focus on growth, customer service along with product and service innovation.”
The new round will be used to attract top talent across the entire company, with a key focus on doubling the current engineering department over the next 12 months.
Signifyd’s series C round follows its two funding rounds in 2016: a 20 million dollar round last February and a 19 million dollar surge in September. Under leadership from ex-PayPal fraud and risk experts, Rajesh Ramanand and Michael Liberty, the company also increased its number of protected merchants to more than 5,000, saw 20x growth in transaction volume, 4.5x revenue growth year-over-year and boosted its number of employees to more than 100—a 50 percent increase from the year prior. This led to Signifyd moving into a new office to accommodate its growth.
“Signifyd is emblematic of the range of industries that can be reimagined with machine learning and AI. Raj and team have invented a new approach to fraud prevention, harnessing data from over 5,000 merchants to deliver a 6x ROI to their customers,” said Indy Guha at Bain Capital Ventures, who will also be joining Signifyd’s Board. “Bain Capital Ventures has deep ties to the retail ecosystem through investments like Jet.com and our private equity arm owns retail brands like Michael Stores, BlueNile, Toys R' Us and many others. Our belief in the Signifyd approach runs deep. Thanks to its unmatched machine learning technology, Signifyd will continue to scale and protect some of the largest online retailers.”
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