PYMNTS-MonitorEdge-May-2024

AI-Based eCommerce Fraud Solution Signifyd Closes $205 Million Round

Signifyd Closes $205 Million Funding Round

eCommerce fraud protection platform Signifyd has raised $205 million in a Series E funding round, the company announced in a press release Thursday (April 15), valuing the platform at $1.34 billion.

Signifyd will use the money to expand its “identity-centric” commerce protection service, particularly in Latin America, as well as in Europe, the Middle East and Asia (EMEA), the release stated.

“Last year, we saw eCommerce sales and influence propelled into 2025,” said Signifyd CEO Raj Ramanand in the release. “And yet the online checkout experience is stuck in 2015. With this latest investment, Signifyd has the roadmap, the resources and technical talent to enable merchants to push the customer experience to that future state — and to keep pushing it forward for years to come.”

Owl Rock Capital led the funding round, which also included FIS, Canada Pension Plan Investment Board (CPP Investments) and Neuberger Berman Investment Advisers, according to the release.

Signifyd’s Commerce Protection Platform, which protects merchants from fraud and abuse and optimizes payments, gives sellers an average revenue lift of 5 percent to 7 percent, the release stated.

The platform works with payment gateways, banks and other financial institutions (FIs) to increase transaction approval rates. It also provides a frictionless checkout process while staying up to date with the latest compliance regulations, according to the release.

As the pandemic pushed consumers further toward digital shopping habits, more sophisticated fraudsters followed, increasing online merchants’ need for reliable fraud protection.

Online merchants saw, on average, 344 fraud attempts made per month in 2020, a 24 percent increase from 2019, PYMNTS reported in a recent Digital Fraud Tracker.

The press release also noted that with the acceleration of digital, brands and customers are often new to fraud management. New direct-to-consumer (D2C) companies have to reckon with being responsible for fraudulent charges, and new online shoppers have no transaction history to guide risk management teams.

“As the global eCommerce market continues to grow and payments and checkout needs become more complex, merchants require more sophisticated solutions to optimize transaction acceptance while protecting commerce,” said Jim Johnson, head of Merchant Solutions at FIS, in the release.

PYMNTS-MonitorEdge-May-2024