E-commerce anti-fraud innovator Signifyd has locked in an investment of $19 million from American Express Ventures, Menlo Ventures, and TriplePoint Capital. The funding, which takes Signifyd’s total to $50 million, will help the company grow its infrastructure and continue to enhance its machine learning technology.
American Express Ventures partner Rohit Bodas emphasized both Signifyd’s commitment to state-of-the-art technology as well as the Palo Alto-based startup’s confidence in its technology in discussing his firm’s decision to invest. “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,” Bodas said.
Signifyd co-founder and CEO Rajesh Ramanand demonstrated Guaranteed Payments at FinovateSpring 2013.
Signifyd’s anti-fraud solution leverages the power of the “social graph” and what it says are “thousands of different data points” to help ensure that online consumers are who they say they are. The technology provides merchants with a clear “Accept or Decline” judgement on transactions, and assumes liability for any transaction that is incorrectly determined to be fraudulent. Signifyd says merchants can realize margin gains of 20% and enjoy cash-flow predictability from the company’s 100% financial guarantee alone. Signify serves more than 5,000 e-commerce companies, including major retailers like Peet’s Coffee & Tea and Lacoste.
Founded in 2011 and headquartered in Palo Alto, California, Signifyd demonstrated its Guaranteed Payments technology at FinovateSpring 2013. Earlier this year, Signifyd unveiled a fraud-protection app for Magento Marketplace, and was featured in a March 2016 column from TechCrunch called, “The rise of APIs.” Named one of the best places in the area to work by San Francisco Business Times this past spring, Signifyd began the year extending its integration with Shopify Plus and added CyberSource founder Bill McKiernan to its board of directors.