TLDR: BioCatch, a leader in AI-driven behavioral biometrics for fraud detection, has received a significant majority investment from global private equity firm Permira. This strategic move, valuing BioCatch at approximately $1.3 billion, aims to accelerate the company’s geographical expansion, product innovation, and potential mergers and acquisitions. BioCatch’s technology, which leverages artificial intelligence and machine learning, protects over 400 million banking customers worldwide and has prevented an estimated $4.72 billion in fraud since 2018.
Global private equity firm Permira has significantly deepened its commitment to BioCatch, a pioneer in behavioral biometrics intelligence and a global leader in digital fraud detection. Permira Growth Opportunities II, a fund advised by Permira, acquired a majority stake in BioCatch in May 2024, valuing the company at an impressive $1.3 billion. This follows an initial significant minority stake acquisition by Permira in May 2023, which positioned them as the third-largest shareholder after Bain Capital and Maverick Capital. Existing shareholders Sapphire Ventures and Macquarie Capital have also increased their investments, underscoring strong confidence in BioCatch’s trajectory.
BioCatch, founded in 2011, stands at the forefront of fraud prevention by employing advanced artificial intelligence (AI) and machine learning (ML) technologies. The company’s patented behavioral biometrics intelligence collects thousands of data signals to analyze a user’s cognitive intent, delivering highly accurate insights into the legitimacy of their identity and online behavior. This sophisticated approach allows BioCatch to effectively distinguish between genuine account users and criminal elements attempting illicit activities such as account takeovers and new account fraud.
This substantial investment from Permira is set to catalyze BioCatch’s strategic objectives, focusing on accelerating opportunities for geographical expansion, product innovation, and potential mergers and acquisitions. Gadi Mazor, CEO of BioCatch, expressed enthusiasm for the partnership, stating, “After building a strong partnership with Permira over the last year, we are delighted to welcome them as majority shareholders. The firm’s impressive experience within technology and cybersecurity, combined with their scale, global network, and our close working relationship, has been invaluable since their initial investment.”
BioCatch has demonstrated robust financial performance, surpassing $100 million in Annual Recurring Revenue (ARR) in 2023 and achieving EBITDA profitability. The company maintained strong momentum into the first half of 2024, reporting a 43% year-over-year ARR growth, marking its best first half in company history. Since 2018, BioCatch has played a critical role in preventing an estimated $4.72 billion in fraud globally.
The company currently serves over 200 financial institutions worldwide, including more than 30 of the top 100 global banks, protecting over 400 million banking customers from fraud and financial crime. Permira’s deep sector expertise in technology and company-building capabilities are expected to further expand BioCatch’s leadership in the digital fraud prevention sector, particularly in regions like Continental Europe.
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As part of the deal, Stefan Dziarski, Partner and Co-Head of Permira Growth Opportunities, Dominik Pozny, Principal at Permira, and Ran Maidan, Senior Adviser and Head of Permira in Israel, will join BioCatch’s Board of Directors. Ran Maidan commented on the investment, “We look to back product-first businesses operating in structurally growing end markets and that have management teams with the ambition to scale and grow their business. We found all of that in BioCatch and believe it is the clear leader in the most critical layer in online fraud detection — behavioral biometrics.”
