Providence Strategic Growth invested in NoFraud, which provides fraud prevention software to e-commerce merchants. Providence’s Adam Marcus, managing director, and Govind Anand, principal, joined NoFraud’s board of directors.
NoFraud, a premier provider of full-service fraud prevention software to e-commerce merchants, today announced a significant investment from funds advised by PSG, a leading growth equity firm partnering with lower middle-market software and technology-enabled service companies, marking NoFraud’s first outside investment. PSG’s Adam Marcus, Managing Director, and Govind Anand, Principal, have joined NoFraud’s Board of Directors. Financial terms were not disclosed.
Founded in 2014, NoFraud is an e-commerce fraud prevention solution that employs multiple fraud prevention technologies in a single centralized application. Serving over 1,200 merchants today, NoFraud integrates with payment gateways across multiple platforms, including Shopify, BigCommerce, and Magento, to eliminate card-not-present fraud and chargebacks. Using advanced machine learning technology, NoFraud scrutinizes transactions in real time to provide instant “pass” or “fail” results for transactions, eliminating review bottlenecks and allowing merchants to fulfill legitimate orders immediately.
“I am incredibly proud of the technology we have built and the team we have in place at NoFraud,” said Shaya Posner, CPO and Co-Founder of NoFraud. “As we continue to innovate and build on our success, we’re thrilled to partner with PSG, a team with a long history in software who truly understands our business.”
“NoFraud is delivering essential services to e-commerce merchants at a time when their businesses are experiencing exponential growth, giving small-to-medium sized businesses a full-service tool that is not only meant to protect but boost their bottom line,” said Adam Marcus, Managing Director at PSG. “We’re excited to work with the team at NoFraud through their next phase of growth and support their continuing innovation as they look to expand their capabilities.”
The investment comes at a time in which the risk of online transaction fraud has not only increased dramatically but is also growing faster than overall e-commerce volume. In recent years, card-not-present fraud has become increasingly prevalent and up to 81% more likely than card-present fraud in the U.S.
“The significant growth of e-commerce since the onset of COVID-19 has been met with heightened levels of fraudulent activity, underscoring the importance of our mission to arm merchants with the protection they need so they can focus on growing their businesses,” said Isaac Gurary, CEO and Co-Founder of NoFraud. “As the transition to e-commerce accelerates, we will continue to evolve our platform to meet the expanding needs of customer base and ensure a seamless, fully-integrated experience.”
Weil, Gotshal & Manges LLP served as legal advisor to PSG. Meitar Law Offices served as legal advisor to NoFraud.
NoFraud is an all-in-one fraud prevention solution that leverages a combination of human intelligence and AI-powered, multi-layered fraud screening technology to instantly detect and block fraudulent orders in real-time, eliminating chargebacks and boosting order approval rates. Our proprietary process takes care of fraud from start to finish, no merchant involvement required. With competitive rates, strong order approval rates, and guaranteed chargeback protection, NoFraud is a leading fraud prevention tool for eCommerce merchants who want to boost their bottom line and win the fight against fraud—for good. Learn more at www.nofraud.com.
PSG is a growth equity firm that partners with lower middle-market software and technology-enabled services companies to help them navigate transformational growth, capitalize on strategic opportunities and build strong teams. Having backed more than 60 companies and facilitated over 250 add-on acquisitions, PSG brings extensive investment experience, deep expertise in software and technology and a firm commitment to collaborating with management teams. Founded in 2014, PSG operates out of offices in Boston, Kansas City and London.