Signifyd, the California-based company that provides fraud protection to businesses in the eCommerce space, said Monday (July 13) that it had raised $7 million in Series A financing.
In the announcement, the firm said that the financing round was led by Allegis Capital, alongside participants including IA Ventures, Resolute Ventures and Tekton Ventures, among others.
The latest capital raise brings total funding in the company to just over $11 million since being founded by two former PayPal colleagues, Raj Ramanand and Michael Liberty.
Signifyd said the latest money raised will go toward expanding staff in sales, marketing and engineering. Along with the investment, the company said it has a new member of its board of directors, as Pete Bodine, managing director of Allegis, joins. Signifyd also said it is appointing Tim Eades to the board as an independent member. Eades is chief executive of vArmour Networks and was formerly the CEO of SilverTail Systems.
Under the company’s business model — which it says tackles problems with eCommerce ranging from money lost from chargebacks to customer dissatisfaction to expenses tied to fraud investigations — protection comes through technology that alerts retailers which payments to accept and at the same time guarantees those payments in the event there is a chargeback. In the release detailing the latest $7 million capital raise, the company said it has been growing revenue 20 percent month over month.
“The chargeback process for merchants is broken and is clearly ripe for innovation,” Raj Ramanand, Signifyd CEO and cofounder said in comments included in the release. “The Signifyd platform marries behavioral psychology with machine learning to interpret user purchasing patterns. It automates a process that takes customer service agents hours each day and puts a guarantee behind that automation.”