Global private equity firm Permira’s Growth Opportunities II fund has acquired a majority stake in BioCatch, a company specializing in digital fraud detection and financial crime prevention using behavioral biometric intelligence. BioCatch employs advanced machine learning to differentiate between legitimate account users and criminals who have illicitly accessed accounts.

BioCatch's algorithm monitors and analyzes the digital behavior patterns of hundreds of millions of retail banking customers. This provides insights into the legitimacy of their identity and behavior without compromising privacy. The company has achieved significant milestones, surpassing $100 million in annual recurring revenue (ARR) and reaching EBITDA profitability in 2023. In the first half of 2024, BioCatch saw a 43% year-over-year growth in ARR, marking its best first half-year performance. ARR from new solutions like scam prevention and mule detection has more than tripled over the past year.

BioCatch now serves over 200 financial institutions globally, including more than 30 of the world’s top 100 banks, and protects over 400 million banking customers worldwide from fraud and financial crime. Since 2018, BioCatch has prevented an estimated $4.72 billion in fraud.

As part of the acquisition 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 will also serve as Chairman of the Board.

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