E-Commerce startup Signifyd raises $205M in funding to provide e-commerce protection and eliminate fraud
Online fraud is costing U.S. merchants more this year than it did a year before. In addition, the average number of both attempted and the cost of fraud for online merchants continues to go up. Every $1 of fraud now costs U.S. retailers $3.36 compared to $3.13 in 2019, according to a new report.
As such, the post-pandemic, e-commerce-first retail era requires merchants to manage complex digital transformation. Payment and checkout experiences must keep pace, necessitating shopper identity-centric optimization across payments, fraud protection, and abuse prevention.
Enter Signifyd, a Silicon Valley-based tech startup and a provider of an e-commerce protection platform with an enterprise-grade fraud technology solution for e-commerce stores. Signifyd simplifies fraud detection through a financial guarantee, allowing businesses to increase sales while reducing fraud losses.
Today, Signifyd announced it has closed a $205 million Series E growth equity financing led by Owl Rock Capital, with participation by financial services provider FIS and investment management organizations Canada Pension Plan Investment Board (CPP Investments) and Neuberger Berman Investment Advisers. The new funding now values the company at $1.34 billion and adds significant resources to expanding Signifyd’s Commerce Protection Platform and identity graph globally, across digital shopping and payments.
Signifyd will use the new funding to fuel the acceleration of its 2020 momentum. Last year, Signifyd exceeded 98% coverage of e-commerce shoppers in major markets, even for the largest retailers, resulting in conversion rate increases of up to 20% for Signifyd clients.
“Signifyd is mission-critical infrastructure for a growing number of retail’s biggest and best-known brands,” Owl Rock Managing Director Kurt Tenenbaum said. “They are poised to expand their position as the market leader in commerce protection just as rapidly shifting consumer preferences are driving an e-commerce inflection point we didn’t think we’d see for several years. We are excited about what the future holds for the company and are pleased to lead this investment and support the Signifyd team as they enter this next stage of strong growth.”
Signifyd will continue its legacy of unlocking better customer experience through identity-centric commerce protection and optimization. Signifyd created a market for guaranteed fraud protection against all chargebacks, including those resulting from consumer abuse.
Signifyd’s role as the innovation pioneer in payment optimization comes in the midst of e-commerce historic transformation. The pandemic and lockdowns pushed e-commerce sales to a historic high and launched an era requiring direct-to-consumer growth, expanded omnichannel fulfillment options, and cross-border expansion.
“Last year we saw e-commerce sales and influence propelled into 2025. And yet the online checkout experience is stuck in 2015,” Signifyd CEO Raj Ramanand said. “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.”
“As the global e-commerce 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. “We are impressed with Signifyd’s innovative approach to this market need and are excited to partner with them.”
Signifyd designed its powerful Commerce Protection Platform to provide comprehensive fraud protection, abuse prevention, and payment optimization. The platform provides merchants with an average 5% to 7% revenue lift and higher in many cases.
Founded in 2011 by Rajesh Ramanand and Michael Liberty, Signifyd provides an end-to-end Commerce Protection Platform that leverages its Commerce Network to maximize conversion, automate customer experience and eliminate fraud and customer abuse for retailers. Signifyd counts among its customers a number of companies on the Fortune 1000 and Digital Commerce 360 Top 500 lists. Signifyd is headquartered in San Jose, CA., with locations in Denver, New York, Mexico City, Belfast and London.