Razorpay, a Bengaluru-based online payments solution provider recently announced about acquiring Thirdwatch, which is a Gurugram based Artificial Intelligence (AI) driven company. Thirdwatch specializes in big data and machine learning. This acquisition will help Razorpay with real-time fraud prevention.
Since its inception, Razorpay has been working on solving problems towards strengthening the fintech and banking ecosystem. The current acquisition will elevate the work Razorpay has been doing in the sphere of exponential technologies: AI, machine learning and big data. As informed by the company, it is aiming to improve payment experience and avoid fraudulent transactions.
Post the acquisition, Thirdwatch will now be based at the company’s headquarters in Bengaluru. This is Razorpay’s very first acquisition and Harshil Mathur, CEO and Co-Founder of Razorpay, says, “This acquisition is a perfect fit. 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 businesses across industries to digitally transform and disrupt, by improving their response and redressal mechanisms of combating fraud. Together, I believe we can help reduce frauds by 30-40 percent by next year.”
In June, Razorpay had secured $75 million as a part of its Series C funding, led by new investors Ribbit Capital and Sequoia India with participation from existing investors Tiger Global Management and Y Combinator. Prior to this, the company had secured a total of $31.5 million across Series A (2016) and Series B (2018) rounds, from 33 angel investors and a strategic investment by MasterCard.
The thriving culture of acquisitions and synergies between organizations has opened up a new avenue for growth. A company can either grow organically or through acquisition but as per the latest trends, the latter is gaining more pace. Most of the successful firms today are going for acquisitions to become more efficient and effective. Hence, it will be interesting to witness how the acquisition of Thirdwatch pans out for Razorpay.