Home » Signifyd closes $205m funding round

Signifyd closes $205m funding round

by Tech Reporter
15th Apr 21 9:17 am

Signifyd, the leading provider of digital commerce protection, today announced 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.

Their investment 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. The range of expertise in the investment syndicate speaks to Signifyd’s impact to date and the scale of the market opportunity ahead.

Indeed, the Series E will fuel acceleration of Signifyd’s 2020 momentum. In the past year, the company:

  • Saw broad adoption by enterprise retailers such as Samsung, Lenovo, multiple divisions across Walmart, Lacoste, Rite Aid, Quiksilver, Build with Ferguson, Mango and many others.
  • Was named one of the largest providers of Enterprise Fraud Management for Ecommerce by leading analyst firm, Forrester.
  • Exceeded 98% coverage of ecommerce shoppers in major markets, even for the largest retailers, resulting in conversion rate increases of up to 20% for Signifyd clients.
  • Widened its global footprint, tripling the team in Europe and launching in LATAM.
  • Doubled revenue year over year — Signifyd expects to hit a $200M revenue run rate in the next year.
  • Achieved wide recognition as the market leader in commerce protection, including by analyst firms such as the Aite Group and Frost & Sullivan.

“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 ecommerce 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 ecommerce’s historic transformation. The pandemic and lockdowns pushed ecommerce sales to an historic high and launched an era requiring direct-to-consumer growth, expanded omnichannel fulfillment options and cross-border expansion.

“Last year we saw ecommerce 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.”

Intelligent payment optimization is the next logical step for a new era of ecommerce. Brands and retailers are living in a world distinguished by:

  • A requirement for more and richer data.
  • The need for a tremendous expansion in fulfillment channels such as buy-online-pick-up-in-store and curbside pickup.
  • Changing payments regulation, such as PSD2 and strong customer authentication (SCA).

“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. “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.

“I’m not surprised that Signifyd is building a new way of understanding shopper identity around the world and across the shopping journey,” said Santosh Marrivagu, head of UK & Ireland for Emma, Europe’s most-awarded mattress brand. “In one of our strategically key markets we partnered with Signifyd in the midst of a once-in-a-century pandemic. Within months, Signifyd was providing us with between 6% and 7% uplift. And we were serving customers better by making sure legitimate buyers were not being turned away.”

Signifyd’s latest investors point to strong pre-IPO credibility and momentum, with strong participation by crossover investor Neuberger Berman and long-term investors in public equity, such as CPP Investments. It also includes one of the world’s leading financial technology companies — FIS. The FIS investment deepens Signifyd’s connectivity in the payments and financial services ecosystem, adding to the expertise of prior investors such as American Express Ventures and Bain Capital.

The combination of the investment and accompanying expertise will help Signifyd accelerate its expansion in Latin America and continue its growth in EMEA. The global footprint will include ongoing additions to Signifyd’s product, customer success, risk intelligence and data science teams while expanding its development and engineering teams.

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