SAN JOSE – Signifyd, a provider of fraud protection for e-commerce businesses, has secured $56 million in Series C financing led by Bain Capital Ventures, with additional participation from MenloVentures, American Express Ventures and other existing investors. This latest round of funding will be used to expand its teams of engineers and 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 3rd 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 co-founder 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 benefits from its location in the heart of San Jose’s AI/machine learning hotbed, where it has cultivated an award-winning culture that earned it a spot in Entrepreneur’s Top Company Cultures in America list for 2017. Given its exponential growth and significant market opportunity, Signifyd was also recognized by Forbes as one of the “50 Most Innovative Companies in Fintech” and by Bloomberg as one of the “50 Most Promising Startups You’ve Never Heard Of”.
Signifyd’s Series C round follows its two funding rounds in 2016: a $20 million round last February and a $19 million 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.