Signifyd today announced it has closed $20 million in Series B funding led by Menlo Ventures, with additional participation from Allegis Capital, IA Ventures, QED Investors, Bill McKiernan and Tim Eades. Pravin Vazirani, a general partner at Menlo Ventures, will also join its Board of Directors.
This new round brings Signifyd’s total funding to $31 million to date. The company will use the funds to accelerate growth, scale its infrastructure, and continue to expand its team of world-class fraud experts.
Signifyd has created a new class of risk-assessment technology designed to leverage the data of the programmable web. Today the platform is used to protect thousands of e-commerce merchants from credit card chargebacks with a 100% financial guarantee. E-commerce fraud costs the industry $9 billion a year and $120 billion in lost revenue. Existing solutions only provide retailers with a cryptic score and rely on human expertise alone to ultimately decide whether or not to accept a transaction. For the first time, merchants of any scale now have the option to receive a 100% financial guarantee against fraud using Signifyd’s machine learning technology and behavioral analytics.
“We’re saving our customers millions of dollars in revenue and merchants of all sizes are taking note,” said Signifyd co-founder and CEO Rajesh Ramanand. “We raised our Series A just 7 months ago and our traction has been tremendous. What’s more, we believe the technology we’re applying to e-commerce is the technical foundation for the next-generation of insurance products.”
In 2015, Signifyd:
Increased to a run rate of $5.6 billion in transaction volume, with an 8X year-over-year revenue growth.
Grew to more than 3000 customers adding marquee clients such as Lacoste, Peet's Coffee, Shane Co. and Jet.com.
Tripled the number of employees, including the addition of executives from Axcient, Citrix and PayPal.
“Over the last year Signifyd has shown tremendous growth and great unit economics with very little capital raised,” said Pravin Vazirani, general partner at Menlo Ventures. “Signifyd has permanently altered the course of the fraud detection industry. There used to only be software providers who didn’t back their product with a guarantee. Signifyd’s ability to give a guarantee at the scale and precision of millions of events from thousands of customers is truly unique. I believe Signifyd is primed to not only solidify its place in e-commerce fraud detection but change the way we think about more traditional insurance markets.”
New board member, Vazirani has been a Managing Director with Menlo Ventures for the past 15 years and focuses on the e-commerce, SaaS and cloud sectors. His current and past investments include Carbonite (NASDAQ: CARB), Edgecast Networks (acquired by Verizon), Like.com (acquired by Google), vArmour, Stance, and Poshmark. Menlo Ventures had previously invested in HNC Software, the market-leading decision management software used by the banking industry to prevent credit card fraud, that was acquired by Fair Isaac in 2002. Signifyd also recently announced the addition of Bill McKiernan, founder of CyberSource Corporation, to its Board earlier this year. McKiernan led CyberSource to its $2 billion acquisition by Visa in 2010.