Indian online payments firm Razorpay has acquired Thirdwatch, a company that specialises in real-time fraud prevention in e-commerce firms powered by artificial intelligence (AI) technology.
Financial terms of the transaction were not revealed.
Thirdwatch founder Shashank Agarwal said: “We’ve always believed in developing technologies that will not just limit e-commerce transactions to be secure and seamless but also make the systems intelligent with real-time insights through AI.
“A similar commitment was echoed by the Razorpay team and that’s what impressed us and brought us together.”
Thirdwatch will now serve as Razorpay’s wholly-owned subsidiary, operating out of Bengaluru.
Razorpay CEO Harshil Mathur called the deal a “perfect fit” and believes that it will result in a 30-40% decrease in fraud level by next year.
Mathur noted: “Our war is against cash, hence we want to address all problems surrounding it through new integrated data science technologies.
“Fraud has been the albatross around ecommerce companies’ necks for the longest time and we believe through this acquisition we will empower ecommerce businesses to digitally transform and disrupt, by improving their response and redressal mechanisms of combating fraud.”
The latest deal comes shortly after Razorpay’s Series C funding round, which raised $75m.
Participants in the fundraising were Ribbit Capital, Sequoia India, Tiger Global Management, and Y Combinator.