Permira acquires majority stake in digital fraud detection startup BioCatch at $1.3B valuation

Digital fraud detection and financial crime prevention startup BioCatch today announced that global private equity firm Permira has agreed to acquire a majority stake in the company. Existing shareholders Sapphire Ventures and Macquarie Capital will also increase their investments alongside the fund’s acquisition. The transaction, valued at $1.3 billion, is expected to propel BioCatch’s global expansion, advance its innovative product roadmap, and support its continued growth.

Founded in 2011, BioCatch has been at the forefront of combating fraud and ensuring online transaction security amidst the shift from branch to online banking. Leveraging patented artificial intelligence, data science, and machine learning technology, BioCatch analyzes user behavior to detect fraud accurately. In 2023, the company expanded its mission to include a proactive approach to fighting financial crime with predictive, behavior-based mule account detection.

The company has secured funding totaling more than $200 million to date, with investments from leading financial institutions including American Express, HSBC, Barclays, Citi, and National Australia Bank.

Permira initially invested in the company in early 2023 and has witnessed substantial growth since then. BioCatch finished 2023 with 49% ARR growth, surpassing the $100 million ARR milestone, and achieving EBITDA profitability. With over 190 financial institutions as customers globally, including 30 of the world’s largest 100 banks, BioCatch’s solutions are used for fraud prevention and decision intelligence sharing.

Permira brings a growth mindset to BioCatch’s next chapter, with plans to expand the company across Continental Europe and strengthen its global leadership position. Stefan Dziarski, Partner and Co-Head of Permira Growth Opportunities, expressed excitement about becoming the company’s majority shareholder and the potential for continued growth.

Gadi Mazor, CEO of BioCatch, welcomed Permira as majority shareholders, citing their impressive experience in technology and cybersecurity. Mazor expressed gratitude to Maverick Ventures and Bain Capital for their support and emphasized his excitement to take BioCatch to the next level with Permira’s backing.