E-commerce fraud is a growing problem, but Signifyd thinks it has a solution to save businesses money.
Their company is growing fast and has closed a $56 million Series C investment led by Bain Capital Ventures. Menlo Ventures and American Express also participated in the round.
Signifyd counts big clients like Jet.com, Peet’s Coffee and Lacoste, where it uses its pattern recognition technology to warn them upfront about potential fraudulent charges. Signifyd is so confident in its assessments that it offers the companies a guarantee, so they don’t have to pay for errors.
The product “protects the merchants so they don’t have to bear the liability,” said co-founder and CEO Rajesh Ramanand. The team has been developing a “machine learning platform that makes these decision in real-time.”
E-commerce brands spend a lot of money paying back credit card companies after processing transactions that are criminal. That’s why 5,000 businesses are now paying for Signifyd’s technology — because its early warning system eliminates these frustrating reimbursement costs, known as “chargebacks.”
Indy Guha, partner at Bain Capital Ventures said he invested in the company because his research shows that “fraud is growing faster than overall e-commerce growth.” He feels that “Signifyd is a really easy piece of insurance to turn on.”
Investors have been throwing a lot of money at Signifyd. In addition to the latest sizable round, Signifyd raised two rounds last year, totaling $39 million.
Ramanand says they are going to use the money to double their engineering headcount and continue to improve their machine learning platform. They also want to expand internationally, particularly in Europe and Australia.
The company has about 130 employees and is based in San Jose, California.