E-commerce fraud protection provider Signifyd has scored $56m in a Series C round led by Bain Capital Ventures.
Menlo Ventures, AMEX and other existing backers also participated in the round that takes the firm’s total funding to $87m since launching in 2011.
The company aims to help online retailers avoid the billions of dollars lost in chargebacks paid to credit card companies as a result of processing criminal transactions.
It uses machine learning to replace traditional fraud detection and by offering 100% financial guarantee against fraud shifts the liability for fraud away from the retailer.
Signifyd CEO and co-founder Rajesh Ramanand explained: “E-commerce is fiercely competitive and we see a whole new wave of competition arriving in the form of brick-and-mortar retailers shifting their focus online.
“In this environment, merchants are seeking a fully predictable cost for fraud that can eliminate liability and free up internal resources to focus on growth, customer service along with product and service innovation.”
The California-based business currently serves more than 5,000 merchants and will use the new capital to double its team of engineers, as well as hire more fraud experts and expand its service across the US, Europe and Asia.
It previously raised $20m in a February 2016 Series B round led by Menlo Ventures.
Bain Capital Ventures’ Indy Guha will join Signifyd’s board as a result of the deal and said: “Bain Capital Ventures has deep ties to the retail ecosystem through investments like Jet.com and our private equity arm owns retail brands like Michael Stores, BlueNile, Toys R’ Us and many others.
“Our belief in the Signifyd approach runs deep. Thanks to its unmatched machine learning technology, Signifyd will continue to scale and protect some of the largest online retailers.”
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