Artificial Intelligence-powered fraud prevention startup ThirdWatch has raised an undisclosed amount of angel funding from Indian Angel Network (IAN).
The one-and-a-half year old Gurgaon-based startup’s key product is Mitra, an AI-based programme which evaluates and flags every transaction as ‘genuine’ or ‘fraudulent’ in real time. It works with the help of a Trust Score which is generated with the help of machine learning algorithms, browsing behaviour analysis, device fingerprinting, location profiles and other evaluation parameters which determines the transactions’ authenticity.
Founded by Adarsh Jain, CEO, and Shashank Agarwal, CTO, ThirdWatch is reportedly India’s first AI-based startup in the area.
According to a media statement, Keshav Sanghi, former managing director of Goldman Sachs India and founder of investment firm VentureWorks India, as well as financial advisory firm Batlivala & Karani Securities have also invested in ThirdWatch.
“Over the past few years, we have seen e-commerce fraud grow both in scale and variety. 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, IAN’s lead investor. Established in 2006, the IAN is India’s first and the world’s largest business angel network with over 450 members across the world.
The statement added that the ThirdWatch’s relevance will only increase in the coming times as the Indian e-commerce industry is expected to jump from $30 billion in 2016 to $120 billion by 2020.
According to ThirdWatch, Mitra’s AI keeps on evolving and becoming more intelligent over time as it sees and grasps more and more transactions. That’s why, Mitra chiefly deals with the problems around product returning to origin, payment fraud, promotional code fraud and account abuse, among others.
“ThirdWatch has successfully reduced return to origin (RTO) problem in online orders by more than 80 percent within three months of going live for their current clients. We also offer a two-month free trial period so that our clients can validate the ThirdWatch AI’s efficiency, accuracy and value addition before they start paying,” said Shashank Agarwal, co-founder and CTO of ThirdWatch.