Signifyd, that protects ecommerce businesses from fraud and chargebacks, has secured $56 million in a Series C investment round led by Bain Capital Ventures, with additional participation from Menlo Ventures, American Express Ventures and existing investors. According to the company the 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.
“Our rapid growth has been made possible by our customers’ ability to scale, enter new markets and accept orders their competitors have turned away,” said Rajesh Ramanand, Co-Founder and CEO, Signifyd.
“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.”
With the fresh funding the company also plans to ramp up talent acquisition, focusing on doubling the current engineering department over the next 12 months. It will also leverage its location of San Jose, which it claims is the AI/machine learning hotbed to boost its machine learning offering.
Signifyd claims that its machine learning offering provides a 100% financial guarantee against fraud or chargebacks on every approved order, thereby shifting liability for fraud away from e-tailers. 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.
Its ‘Guaranteed Fraud Protection’ fully reimburses customers for any fraudulent transactions that slip through the cracks, effectively removing liability from the merchant. Signifyd claims that its clients see a 15-20% increase in their bottom line, on average, enough to keep some e-tailers from going out of business.
Prior to the Series C, the company raised $20 million in February 2017 and $19 million surge in September last year. Within the past year, the company has partnered with Salesforce Commerce Cloud, Magento, Accertify and ThreatMetrix.