Just days after announcing its decision to purchase Hyperwallet, PayPal is back – purse in hand – for another big buy. The company will acquire fraud prevention and risk management specialist Simility for $120 million.
“This acquisition, like the acquisitions of Swift Financial, iZettle, Jetlore, and Hyperwallet that we’ve announced in the last twelve months, is part of a concerted effort to strengthen the suite of services we can provide to merchants in order to become the one-stop solution for global commerce,” Bill Ready, PayPal COO and EVP, wrote at the company blog.
Ready noted that PayPal has long been interested in the company, having invested in them in 2017, and currently owns 3% of the firm. He complemented the Palo Alto, California-based anti-fraud company’s technology and the way it “allow(ed) merchants to adjust individual risk rules to reduce fraudulent payment activity and, in some cases, verify transactions that may have otherwise failed.”
The acquisition is anticipated to close in Q3 of this year. Simility CEO Rahul Pangam, along with his team, will report to VP of Enterprise Services, Platforms Tushar Shah. PayPal will also pick up an office in Hyderabad, India, which Ready said “enhanc(ed) our presence in a key strategic market.”
A veteran of our developers conference FinDEVr, Simility showed how its advanced machine learning technology provides businesses with an adaptive anti-fraud solution. The company’s presentation, Fraud Mutates – Detect, Understand, and Block It, showed how a combination of flexible data ingestion and signal analysis – supported by advanced ML modeling and human analysis can help secure new account originations and wire transfers, support AML efforts, prevent account takeover, and more.
“Our vision for Simility was to create an adaptive risk management platform that empowers organizations operating in a digital world to manage an evolving fraud and risk landscape where data breaches are the new normal,” Simility’s Pangam said. “We are excited to enter the nest phase of our growth with PayPal and are thrilled to join them to help drive the next generation of payment and commerce solutions while scaling our business together.”
Founded in 2014, Simility had raised more than $24 million in funding prior to today’s announcement. The company has spent the summer adding executive talent: hiring Anupam Bagri as Director of Sales and Business Development for India and Asia-Pacific in the first half of June, and appointing Vanita Pandey as Vice President of Marketing and Product Strategy just last week.