PayPal Buys Hyderabad-Based Fraud and Risk Management Provider Simility
Continuing its acquisitions streak to provide more modern tools for its customers, payment provider PayPal has acquired Simility – a fraud and risk management provider based out of Hyderabad – for $120 million in cash. PayPal is already an investor in Simility and owns three percent of the company. Simility, which offers both online cloud-based fraud-detection software solutions.
Simility has recently raised about $25 million with its major investors being Trinity Ventures, Valley Fund and Accel Partners and was valued recently at just over $52 million and the new deal, which is expected to be closed in the third quarter of 2018, seems to be a good return for its investors. The acquisition will allow PayPal to deliver fraud prevention and risk management solutions to its 237 million and growing customers.
Once the deal is closed, merchants on PayPal platform will gain access to the fraud prevention tools and will be able to customise their payments according to their business needs through the dashboard on their existing accounts.
PayPal’s Chief Operating Officer Bill Ready said that fraudsters have taken note of digital commerce being exploded are adapting and developing new methods to carry out their crimes. He further added that together with Simility they will be able to put more control in the hands of PayPal merchants to fight fraud while helping make commerce experiences faster and more secure.
Simility’s fraud detection software solutions work by combining human analysis and machine learning. The company’s platform, aimed at protecting SMBs and enterprise clients from the many types of fraud, helps fraud analysts to adapt to the evolving tactics of fraudsters without the need to write ny code.
The company’s services have been adopted globally and its enterprise customers ranges from largest e-commerce platform in Africa to financial organizations from the fortune 500 and top 50 banks in the U.S.
“Our vision for Simility was to create an adaptive risk management platform that empowers organisations operating in a digital world to manage an evolving fraud and risk landscape,” said Simility CEO Rahul Pangam.
There have also been similar enterprise deals in the recent past including the acquisition of Mezi by American Express, Nutanix’s acquisition of Minjar and ESW Capital pocketing London-based customer service software company Kayako.