Good news for Signifyd this week. The largest provider to ecommerce merchants of Guaranteed Fraud Protection has announced that they have managed to raise an additional $56 million of Series C Financing. This third round of capital injection has been led by Bain Capital Ventures with additional participation from American Express Ventures, Menlo Ventures and a range of other existing investors. The funding will be used to fund an expansion of it engineering teams and fraud experts and will help them scale its machine learning-enabled Guaranteed Fraud Protection for ecommerce businesses across the US, Europe and Asia.
Talking about the securing of $56 million in financing, Signifyd co-founder and CEO, Rajesh Ramanand said:
“Our rapid growth has been made possible by our customers’ ability to scale, enter new markets and accept orders their competitors have turned away. 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.”
Signifyd has seen a lot of success in a short space of time thanks to its innovative approach to fraud protection for ecommerce companies and offers a number of key benefits:
- Predictable fraud costs – The Signifyd service provides fixed fraud costs with zero merchant liability. Once Signifyd approves a transaction, the sale is 100% protected.
- Signifyd combines an insurance model with artificial intelligence for every transaction. This outperforms more archaic systems that ‘score’ a merchant for making a final decision.
- Signifyd evaluates all transactions in real time with AI. This is useful for merchants to whom speed is vital.
- Signifyd has plugins for several major ecommerce system such as Shopify, BigCommerce, Magento, and DemandWare. It also has a fully open and documented API for other platforms.
- Merchants do not have to worry about any chargeback issues that they may suffer with other systems. Retailers can be reimbursed within 48 hours which includes chargeback fees and shipping.
- Full reports are given to the merchant on all declined transactions.
Indy Guha at Bain Capital Ventures who led the financing will also be joining Signifyd Board.
“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. 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.”
The investment tops off a successful 12 months for the company which has seen them partner with Salesforce Commerce Cloud, Accertify, ThreatMetrix and Magneto.