Artificial Intelligence (AI) driven e-commerce fraud prevention startup ThirdWatch has raised an undisclosed funding in an angel round led by lead investor Rahul Agarwalla from the Indian Angel Network.
The investment round also saw the participation from Keshav Sanghi, former managing director of Goldman Sachs India and the founder of investment firm VentureWorks India as well as financial advisory firm Batlivala & Karani Securities.
The Gurugram-based company provides fraud prevention solutions to multiple e-commerce companies in India and the West Asia.
Importantly, this also marks Indian Angel Network’s maiden investment from the Rs 450 crores IAN Fund.
Founded by Adarsh Jain and Shashank Agarwal in 2016, ThirdWatch’s flagship product Mitra evaluates and flags every transaction in real-time as fraudulent or genuine on the basis of a trust score.
The trust score is generated with the help of machine learning algorithms, User’s browsing behaviour analysis, device fingerprinting, location profiles and other evaluation parameters which determines every transactions’ authenticity.
“Over the past few years, we have seen e-commerce fraud grow both in scale and variety. We need adaptive solutions to prevent fraud losses. I believe that ThirdWatch’s proven AI technology and unique analytical model truly differentiates the company in a fast-growing global fraud prevention marketplace,” said Rahul Agarwalla in a press statement.
ThirdWatch claims to successfully reduce Return to Origin (RTO) problem in online orders by more than 80% within three months of going live for its clientele base. E-commerce companies and merchants with online operations can integrate Mitra’s API which automatically blocks fraudsters at large scale, without having dedicated team for fraud detection and review.
E-commerce companies and merchants with online operations can integrate Mitra’s API which automatically blocks fraudsters at large scale, without having dedicated team for fraud detection and review.
Currently, e-commerce sector is plagued by multiple kinds of user fraud and abuses like a return to the origin, promo code abuse, duplicate item returns, and payment gateway fraud. Importantly, money lost due to fraud on digital transactions is over $500 million in India. With the digital transactions growing at over 50% on a yearly basis, the problem is getting bigger.