Razorpay, which is an online payment gateway startup, has now acquired the Gurgaon based fraud prevention startup Thirdwatch for an undisclosed sum.
The acquisition is also a part of its long term strategy to use some of the new technologies like the AI and Big Data to ssolve unique business issues, Razorpay revealed.
The Thirdwatch team will now also going to be relocated to Razorpay headquarters in Bangalore.
The company which is founded by the Shashank and Adarsh in 2016, it provides help in real-time fraud prevention and detection. Its flagship product, Mitra, evaluates in real-time scenario whether a transaction is fraudulent or genuine based on a trust score.
It even provides software as a service-based fraud prevention technology. The company uses the AI-enabled fraud prevention engine Mitra, which reduces the return to origin problem by less than 80% in eCommerce companies.
“The team at Thirdwatch comes with an exceptional understanding and expertise in AI, machine learning and data sciences, and together we envision a future where AI will help e-commerce firms not just combat fraud but maintain a competitive advantage and significantly improve merchant profitability. Together, I believe we can help reduce frauds by 30-40% by next year,” said Harshil Mathur, chief executive officer, and co-founder, Razorpay.
“Fraud has been one of the largest and longest concerns for eCommerce companies. Most of their systems frequently fail while identifying fraudulent patterns and therefore not capable of differentiating between genuine customers and fraudsters. There is a dire need for a data-driven solution to help identify these patterns and reduce losses of any kind, to help the marketplace function at an optimal level,” Agarwal, founder of Thirdwatch, said.