Signifyd Secures an Additional $19 Million for Its Machine Learning-Based Financial Guarantee for E-commerce Fraud
SAN JOSE, Calif.--(BUSINESS WIRE)--Sep 8, 2016--Signifyd, the fastest-growing provider of fraud protection for e-commerce businesses, today announced it has secured $19 million in capital from Menlo Ventures, TriplePoint Capital and American Express Ventures. This announcement comes on the heels of 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. This latest investment allows Signifyd to scale its infrastructure and further 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.
Existing solutions only provide retailers with a cryptic score based on rules, and rely on human expertise to ultimately decide whether or not to accept a transaction. Signifyd has created a new class of risk-assessment technology, using cutting-edge machine learning algorithms that leverage the data of the programmable web. Signifyd simply tells merchants whether or not a purchase is legitimate and if they should ship the product, while guaranteeing every transaction it approves.
“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. At the end of 2015, the company announced that it had increased to a run rate of $5.6 billion in transaction volume, with an 8x year-over-year revenue growth, and tripled its number of employees. Signifyd now serves over 5,000 e-commerce companies, including several Fortune 1000 retailers such as Jet.com, Lacoste, and Peet’s Coffee & Tea.
For more information about Signifyd, please visit www.signifyd.com.
Signifyd was founded on the belief that e-commerce businesses should be able to grow without the fear of fraud. Signifyd solves the challenges that growing e-commerce businesses persistently face: billions of dollars lost in chargebacks, customer dissatisfaction from mistaken declines, and operational costs due to tedious, manual transaction investigation. E-Commerce Assurance, Signifyd’s financial guarantee protecting online retailers in the case of chargebacks, is supported by a full-service machine learning platform that automates fraud prevention allowing businesses to increase sales and open new markets while reducing risk. Signifyd is in use by companies on the Fortune 1000 and Internet Retailer Top 500 list. Signifyd is headquartered in San Jose, CA.
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KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA
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PUB: 09/08/2016 01:37 PM/DISC: 09/08/2016 01:37 PM