Razorpay, a digital payments startup has acquired a fraud analytics startup Thirdwatch in an all-cash deal. However, Razorpay has not disclosed any details of the deal but has said to help fund the transaction it is making use of the recently raised USD 75 million.
“ Thirdwatch will help us offer Artificial Intelligence and Machine Learning-based detection tools to reduce cash on delivery frauds which we will be offering to e-commerce platforms that are our clients,” said Harshil Mathur, Chief Executive Officer, Razorpay.
The Gurugram-based startup, Thirdwatch with around 10 employees will operate as the subsidiary of the Razorpay.
Through its platform called Mitra, Thirdwatch claims to reduce the fraud losses for the e-commerce firm by 80 percent. The company has raised angel funding from India Angel Network in 2017.
Mathur said that “We had some common clients already…now our entire client base will be offered these tools which in turn can help them reduce costs. It would have taken a lot of time for Thirdwatch to scale up but now it gets the chance to work with a much larger user base. The 3.5 lakh websites, which use Razorpay, will now be offered these tools as a part of a product suite.”