Signifyd closed a $100 million Series D investment round at the end of May, with the investment vehicle of the chairman of leading Indian information technology services company Wipro leading the round. Signifyd plans to use the funds to double it’s headcount to 320 employees, including its new European office in Barcelona that opened in April. The latest funding round raised the Silicon Valley based startup’s total investment to date to $187 million. Existing investors Bain Capital Ventures, Menlo Ventures and American Express Ventures, among others, joined Azim Premji’s Premji Invest in the latest investment round.
Signifyd’s Series D round gave a comparatively rich valuation of the company at $400 million for the company, which provides merchants a chargeback guarantee policy and anti-fraud solution based on machine learning. The company claims to analyze 1,000 different data points in determining whether to approve or decline merchants‘ card-not-present orders. It’s client roster includes major companies and brands such as Luxottica, Wayfair, Lacoste and Walmart’s Jet.com.
Investors likely based Signifyd’s valuation in part on the company’s healthy gross revenue figures, which Bloomberg sources pegged at $75 million per year. By way of comparison, Signifyd’s major competitors in the market, Riskified and Forter have raised in total funding to date $64 million and $50 million, respectively, according to Crunchbase. No publicly available data regarding the privately-held Riskified and Forter’s respective valuations or earnings could be found.
“The fraud detection and prevention market is estimated to reach nearly $42 billion by 2022,” Signifyd CEO and co-founder Raj Ramanand,” said in a press release announcing the new funding round. “However, while fraud remains a serious concern, transactions wrongly declined due to suspected fraud represents a bigger problem of more than $150 billion a year.”
Alongside ThreatMetrix’s January acquisition by RELX Group for $779 million (GBP 580 million), Signifyd’s latest valuation suggest that fraud prevention startups are rapidly adding value in a market still full of growth opportunities. Expect to see some of these startups break the $1 billion mark in the next two to three years.