Fraud Protection Firm Signifyd Raises $100 Million

Signifyd, a San Jose, CA-based company that specializes in fraud protection solutions for e-commerce businesses, on Wednesday announced that it raised $100 million in a Series D funding round.

The round was led by Premji Invest, with participation from existing investors Bain Capital Ventures, Menlo Ventures, American Express Ventures, IA Ventures, Allegis Cyber and Resolute Ventures.

This brings the total raised by the company to date to $187 million, including $56 million secured in 2017 and $20 million in the previous year. Bloomberg reported that the company has been valued at roughly $400 million following the latest funding round.

Signifyd says it will use the funds to further accelerate its growth. The company claims the number of global e-commerce businesses it protects has doubled to more than 10,000. Signifyd customers include Build.com, Helly Hansen, iRobot, Walmart-owned Jet, Lacoste, Luxottica, Stance, Tous and Wayfair.

The company recently partnered with Magento, the open-source e-commerce platform, which Adobe agreed to buy for $1.68 billion.

Signifyd provides a solution that helps organizations identify fraudulent online orders by using a combination of machine learning, data science research and behavior technology. The solution should help reduce the risk of chargebacks and fraud without having a negative impact on customer experience.

Last month, the company opened its first European office in Barcelona, Spain.

“The fraud detection and prevention market is estimated to reach nearly $42 billion by 2022,” said Raj Ramanand, CEO and co-founder of Signifyd. “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.”

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Original author: Eduard Kovacs