Signifyd Success Story: Empowering Companies With Innovative Fraud Protection and Prevention Services

Signifyd Success Story: Empowering Companies With Innovative Fraud Protection and Prevention Services

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Over the course of time, the birth of eCommerce platforms has proven to be beneficial in a way that we can shop for anything and everything online. However, when it comes to security, people are still skeptical of shopping online due to the high rise of fraudulent activities.

For business owners and online retailers, too, safety is one of the fundamental aspects of an eCommerce store. No matter how big or small the online business is, if it is not secured, chances are it will be affected by pirates or malicious activities.

Well, technology is no longer the same. Today, we have new technological solutions that can protect us from being hacked.

Signifyd is a privately held company that offers solutions to eliminate fraud for eCommerce stores. The company was founded in 2011 by Michael Liberty and Rajesh Ramanand. Signifyd, one of the world’s largest providers of guaranteed fraud protection, has served consumers in more than 100 countries. Several businesses featured on the Fortune 1000 and Internet Retailer Top 500 lists are among Signifyd's clients.

To know more about Signifyd, go through this article that will give you an insight into its business model, startup story, founders, and more.

Signifyd - Company Highlights

Startup Name Signifyd
Headquarters San Jose, California, USA
Sector Software Development
Founders Michael Liberty, Rajesh Ramanand
Founded 2011

Signifyd - About
Signifyd - Industry
Signifyd - Founders and Team
Signifyd - Startup Story
Signifyd - Mission and Vision
Signifyd - Name, Tagline, and Logo
Signifyd - Business and Revenue Model
Signifyd - Funding and Investors
Signifyd - Growth
Signifyd - Awards and Achievements
Signifyd - Competitors
Signifyd - Future Plans

Signifyd - About

Signifyd offers a progressive Commerce Protection Platform that uses its commerce network to increase sales, automate customer experience, and get rid of fraud and customer misuse for retailers. It is a provider of enterprise-grade fraud technology for eCommerce stores. Some of its partners are leading eCommerce platforms like BigCommerce, Magento, Salesforce Commerce Cloud, and Shopify.

To provide a 100% monetary guarantee against fraud and chargebacks on approved orders, the firm uses solutions like big data and machine learning. As a result, eCommerce merchants are no longer held responsible for fraud, enabling them to lower risk while increasing conversions and expanding into new markets.

The company has offices in Denver, New York, Mexico City, Belfast, and London in addition to its headquarters in San Jose, California. Its specialties include Machine Learning, Fraud Prevention & Protection, Big Data, Guaranteed Payments, Friction-free eCommerce, and Revenue growth.

Signifyd - Industry

Signifyd belongs to the software development industry. Among all business sectors, the software development industry has unarguably experienced the fastest growth. It is estimated that the revenue in the software market is projected to reach $650.70 billion in 2023, according to Statista.

In terms of global comparison, Statista suggests that the United States will produce the most revenue in software development, which will be approximately $321.60 billion in 2023.

Signifyd - Founders and Team

Signifyd was developed by Michael Liberty and Rajesh Ramanand in 2011.  

Michael Liberty

Michael Liberty - Co-founder and CPO, Signifyd
Michael Liberty - Co-founder and CPO, Signifyd

Michael Liberty (Mike Liberty) has studied Economics at the University of Chicago and has an MBA degree from Standford University Graduate School of Business. Presently, he works as the Chief Product Officer at Signifyd. Before co-founding Signifyd, Micheal worked as the Manager, of New Ventures Risk at PayPal. He started his career as a Night Analyst at Lazard and later on went on to work with JPMorgan and CIVC Partners in his initial career. Besides this, Michael has also worked for GWC Warranty as its Director of Business Development and later as its Chief Operating Officer.

Rajesh Ramanand

Rajesh Ramanand - Co-founder and CEO, Signifyd
Rajesh Ramanand - Co-founder and CEO, Signifyd

Rajesh Ramanand is the Co-founder and CEO at Signifyd. Alongside, he also serves on the Education Committee at Merchant Risk Council. Prior to Signifyd, Rajesh was the head of PayPal's Emerging Markets Risk division, in which he was in charge of overseeing credit and fraud risk in Latin America, the Middle East, and Africa.

Rajesh Ramanand has also worked for FedEx for eight years, where he led the Risk Management Division for Payments and Shipping at Fedex in addition to creating their package intercept system. Rajesh has a master's in Computer Science with a focus on data mining.

Signifyd - Startup Story

The idea of Signifyd struck when two co-workers, Michael and Rajesh, were working at PayPal. They both always wanted to track fraudsters on social media. Michael and Rajesh started the company after leaving their jobs at PayPal.

In the beginning, a scoring solution that guaranteed fraud protection quickly became a superior product–market fit, which became the reason for their growth.

With this success, both the founders added products and features to their product stack to expand, which further protected retailers from chargebacks of all kinds, including those caused by consumer fraud and payment optimization under Strong Customer Authentication (SCA).

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Signifyd - Mission and Vision

Signifyd strongly believes in having an empathic platform for its customers. Its mission is to create fraud-free eCommerce for every business. The company wants to eliminate all the challenges faced by retailers, such as customer dissatisfaction and unnecessary operational costs, and deliver them a seamless commerce platform.

Signifyd Logo
Signifyd Logo

Signifyd's current tagline is "Protect, trust, and grow with Signifyd."

The company's tagline reflects its commitment to providing comprehensive fraud protection solutions that enable businesses to build trust with their customers and grow their sales.

Signifyd - Business and Revenue Model

As we all know, Signifyd has a commerce protection platform to eliminate all fraudulent activities, it operates on a guaranteed fraud protection model to help retailers in terms of security. With the help of a variety of data sets, Signifyd's real-time machine learning system can identify legitimate orders that traditional fraud tools would have rejected out of concern for fraud as well as detect fraudulent ones. Having said that, Signifyd can also be said to operate as an automation model as it automatically detects any sort of phony orders in its client eCommerce store.

Signifyd eCommerce fraud protection platform has three primary services for companies, these are:

  • Revenue Protection
  • Abuse Protection
  • Payments Compliance

The firm's Commerce Protection Platform consists of various products and solutions that automate online order flows in a systematic manner that can instantly point out fraudulent orders from legitimate ones or any sort of illegal activities that its customers could face.

Signifyd offers solutions in the form of Fraud Protection, Abuse Prevention, Account Protection, and Payment Optimization for the following:

  • Guaranteed Fraud Protection
  • Automated Recommendations
  • Policy Protection
  • Guaranteed INR Protection
  • Return Abuse Prevention
  • Chargeback Recovery
  • ATO Protection
  • Auth Rate Optimization
  • SCA Exemption Management

Signifyd generates revenue primarily by offering its Commerce Protection Platform solutions to its clients. The company, however, hasn't disclosed its revenue model to the public yet.

Signifyd - Funding and Investors

Signifyd has raised a total funding amount of $390 million over six rounds of funding. The details of its funding and investors are as follows:

Date Funding Round Amount Raised Lead Investors
Apr 15, 2021 Series E $205 million Owl Rock Capital
May 31, 2018 Series D $100 million PremjiInvest
May 4, 2017 Series C $56 million Bain Capital Ventures
Feb 25, 2016 Series B $20 million Menlo Ventures
Jun 22, 2015 Series A $7 million -
Dec 19, 2012 Seed Round $2 million -

Signifyd is also backed by investors like Canada Pension Plan Investment Board, FIS, Neuberger Berman Group, Lucas Venture Group, American Express Ventures, AllegisCyber, IA Ventures, and Resolute Ventures.

Signifyd - Growth

The year 2021 was a great year for Signifyd. The company looks to that year in which it continued to innovate in the field of eCommerce payments, became a unicorn, and furthered its goal of giving merchants transparent, adaptable solutions in the face of quickly shifting market conditions.

Signifyd maintained its position as a market leader in fraud protection, the best solution for usability, and momentum, and was recognized by G2 as the best company in all three categories. Furthermore, the company even expanded its team in Mexico and launched an office in Brazil.

In 2022, Signifyd achieved impressive growth and helped drive significant value for its customers. The company's top 10 customers experienced an average approval rate uplift of 9%, while merchants on the Signifyd Commerce Network saw a 67% increase in sales. Signifyd also demonstrated its reliability and scalability during Cyber Week, maintaining 99.9999% uptime and evaluating over $40 million per hour in orders. Furthermore, Signifyd increased the number of chargebacks it was able to reverse by 49% compared to the previous year.

Signifyd - Awards and Achievements

Some of the awards and achievements of Signifyd are:

  • Merchant Anti-Fraud Solution of the Year, Payments Awards 2022
  • 2020 Best Places to work - San Francisco Business Times
  • 2020 Winner Company of the Year presented by Digital Awards
  • Signifyd was listed under Forbes FinTech 50
  • Best Practices Award 2019 - Frost & Sullivan
  • Signifyd was named a Cool Vendor in Gartner’s 2017 “Security for Midsize Enterprises” report

Signifyd - Competitors

Below are some of the competitors of Signifyd:

  • Forter
  • Kount
  • Riskified
  • ClearSale
  • CyberSource
  • Easy Solutions
  • Akamai

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Signifyd - Future Plans

Signifyd has recently launched the first plug-in with a built-in dynamic exemption for SCA management by teaming up with commercetools, an industry-leading eCommerce software provider. With this partnership, the company believes that it will give commercetools' merchants a chance to increase sales and will bring a 100% financial guarantee.

Signifyd has always strived to give its best to its customers when it comes to various fraud trends and abuses. With this determination, the firm continues to do its best in the coming years by providing a better seamless commerce platform.

Signifyd - FAQs

What does Signifyd do?

Signifyd offers a progressive Commerce Protection Platform that uses its commerce network to increase sales, automate customer experience, and get rid of fraud and customer misuse for retailers.

Who are the founders of Signifyd?

Michael Liberty and Rajesh Ramanand are the founders of Signifyd.

Where is Signifyd's headquarters?

Signifyed's headquarters are situated in San Jose, California, USA.

Who are the competitors of Signifyd?

Some of the prominent competitors of Signifyd are, Forter, Kount, Riskified, ClearSale, CyberSource, Easy Solutions, and Akamai.

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