SAN JOSE, Calif. – Signifyd, the world’s largest provider of guaranteed fraud protection for ecommerce businesses, today announced it has secured $100 million in a Series D round led by Premji Invest, with participation from existing investors Bain Capital Ventures, Menlo Ventures, American Express Ventures, IA Ventures, Allegis Cyber and Resolute Ventures. The new funding will allow Signifyd to further accelerate its growth with global enterprise and omnichannel retailers to provide friction-free ecommerce to their customers.
Signifyd pioneered guaranteed fraud protection that combines machine learning algorithms, proprietary behavior technology and advanced data science research to help identify fraudulent orders for more than 10,000 retailers globally. This network of shared intelligence helps enable global e-commerce for some of the world’s largest brands, such as Build.com, Helly Hansen, iRobot, Jet (now a part of Walmart), Lacoste, Stance, Tous and Wayfair, by allowing them to fulfill more legitimate orders while improving the customer experience.
“Premji invests in private companies with all the necessary ingredients to become thriving stand-alone public companies,” said Sandesh Patnam, lead partner at Premji Invest in the U.S., with investments in companies such as Coupa, Zuora, Apptus, Flipkart, Fab India, Lenskart, Anaplan, Yapstone and Datastax among others. “We are impressed with the velocity of Signifyd’s growth, the breadth of its customers and partners, the culture that Raj and his team have built and the company’s vision for the future. More than that, it comes down to the high quality of Signifyd’s innovation and technology. It couldn’t be clearer that guaranteed fraud protection is reaching mainstream adoption, and Signifyd is leading this space.”
As digital transformation races forward, large omnichannel retailers are concluding that innovative fraud protection is a key to building a best-in-class customer experience. Four in 10 enterprise retailers, for instance, say that providing buy-online-pick-up-in-store services increase their vulnerability to fraud, according to a Signifyd survey of major retailers. Through the guaranteed fraud protection model, Signifyd has provided the answer for retailers struggling with the security vs. experience conundrum.
“The fraud detection and prevention market is estimated to reach nearly $42 billion by 2022,” Signifyd CEO and co-founder Raj Ramanand said. “However, while fraud remains a serious concern, transactions wrongly declined due to suspected fraud represents a bigger problem of more than $150 billion a year. A wrong decline can push consumers to abandon the merchant and thereby erode customer lifetime value. With this funding, we’re looking to continue to enable friction-free e-commerce for enterprise and omnichannel retailers globally.”
By tackling fraud protection for merchants, Signifyd is able to reduce the cost of chargebacks and fraud, increase revenue by shipping orders that previously would have been declined and cut operational expenses by introducing smart automation to the order and review process. In fact, Forrester determined that Signifyd provided a return on investment of 3.8 times over three years in the case of a major retailer in its June 2017 “Total Economic Impact of Guaranteed Fraud Protection.”
Today’s news follows a few years of tremendous growth and momentum that have helped solidify Signifyd as the largest guaranteed fraud protection provider for e-commerce businesses. Signifyd’s Series D round follows its $56 million series C in May 2017. The company also doubled its number of protected merchants to more than 10,000 and released its first Ecommerce Fraud Index. With the growth in European customers and its partnership with Magento, Signifyd also opened its first European office in Barcelona, Spain in April.
The company was named a Cool Vendor in Gartner’s 2017 “Security for Midsize Enterprises” report and within the past two years formed partnerships with Salesforce Commerce Cloud, Magento, BigCommerce, Accertify and ThreatMetrix. Besides being named to the Forbes FinTech 50 and included among Bloomberg’s 50 Most Promising Startups, Signifyd has been listed as having a Top Company Culture by Entrepreneur. The company was also recently named to Inc. Magazine’s Best Workplaces for 2018 and recognized by the San Francisco Business Times and Silicon Valley Business Journal as one of the Bay Area’s Best Places to Work.
Signifyd, the world’s largest provider of guaranteed fraud protection, is enabling retailers to provide friction-free buying experiences for their customers. Signifyd leverages big data, machine-learning and expert manual reviews to provide a 100 percent financial guarantee against fraud on approved orders that turn out to be fraudulent. This effectively shifts the liability for fraud away from e-commerce merchants, allowing them to increase sales and open new markets while reducing risk. Signifyd is in use by multiple companies on the Fortune 1000 and Internet Retailer Top 500 lists. Signifyd is headquartered in Silicon Valley, CA.
About Premji Invest
Premji Invest is the investing arm of Azim Premji, Chairman of Wipro.