SAN JOSE – Signifyd, a fast-growing provider of fraud protection for e-commerce businesses, has secured $19 million in capital from American Express Ventures, Menlo Ventures and Triple Point Capital.
This announcement comes less than a year after Signifyd’s $20 million Series B round in February 2016, which included funding from Menlo Ventures, Allegis Capital, IA Ventures, QED Investors, Bill McKiernan and Tim Eades. Signifyd plans to use the money to scale its infrastructure and optimize its best-in-class machine learning technology.
E-commerce businesses do not have the time and resources to effectively combat fraud on their own, resulting in lower margins from chargebacks, people costs and declined orders from legitimate customers. Signifyd’s unique 100 percent financial guarantee against fraud allows merchants to see up to 20% increases in margins. Under Signifyd’s guarantee, Signifyd will pay for any fraud costs stemming from a transaction if Signifyd approved the transaction. Merchants of any size can use Signifyd to drive cash flow predictability by completely eliminating fraud losses.
“We’re thrilled to partner with Menlo Ventures and American Express,” said Raj Ramanand, CEO and Co-founder of Signifyd. “They are pioneers in financial innovation, enhancing core capabilities and accelerating digital commerce. Our unique approach to delivering a 100% financial guarantee is disrupting digital commerce by driving cash flow predictability to businesses. This was previously not possible and our growth validates the appetite in the market.”
“Merchants of all sizes have a growing need for fraud-management solutions as more consumers shop online,” said Rohit Bodas, Partner, American Express Ventures. “By leveraging machine learning and providing a 100% guarantee, Signifyd is making it possible for even the smallest merchants to combat fraud and achieve measurable cost savings in the process.”
Signifyd was founded by ex-PayPal fraud and risk experts, Raj Ramanand and Mike Liberty. The company now serves over 5,000 e-commerce companies, including several Fortune 1000 retailers such as Jet.com, Lacoste, and Peet’s Coffee & Tea.