E-commerce fraud is a growing problem, but Signifyd thinks it has a solution to save businesses money.
Their company isgrowing 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, Peets Coffee and Lacoste, where it uses its pattern recognition technology to warn them upfront aboutpotential fraudulent charges. Signifyd is so confident in its assessments that it offers the companies a guarantee, so they dont have to pay for errors.
The product protects the merchants so they dont 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 afterprocessing transactions that arecriminal. Thats why 5,000 businesses are now paying for Signifyds technology because its early warning system eliminatesthese frustrating reimbursement costs, known as chargebacks.
Indy Guha, partner at Bain Capital Venturessaid 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 themoney 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.