Following the acquisition with PayPal, Similty’s previous partners will make an exit. The company is currently valued at around $53 million.
California based fraud detection startup Simility is being acquired by global payments major PayPal for $120 million in an all cash deal. The deal was signed on Friday and is reportedly expected to close in the third quarter of 2018. Following the acquisition, PayPal will be able to provide its 237 global merchants new fraud prevention features.
Simility was founded in 2014 risk and fraud detecting solutions to clients in online marketplaces and classifieds, banking and financial services, e-commerce, and payment services providers among others. Its services include combining Artificial Intelligence and Big Data Analytics which help other businesses make decisions to solve fraud problems, improve trust and reduce friction. Mostly payment processors, consumer brands and financial services providers use the features of Simility. The company has raised more than $20 million from Trinity Ventures, The Valley Fund and Accel Partners till date.
Co-founder and CEO of Simility Rahul Pangam said that they wanted to create an adaptive risk management platform empowering organisations to operate in a digital world and manage an evolving fraud. He added that they are excited for the PayPal acquisition and looking forward to help drive the next generation of payment and commerce solutions.
Prior to the acquisition, PayPal owned about 3% share in Simility after it had participated in series A round in 2017. Chief Operating Officer of PayPal, Bill Ready had reportedly stated that digital commerce has exploded and new methods are being developed to carry out crimes. Before today, merchants weren’t able to construct solutions to manage the complexities of business. He added that because of the acquisition with Simility, they will be able to provide more control to their merchants for them to fight fraud and at the same time help make commerce experiences fast and secure.