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Coupa Acquires Deep Relevance to Provide Artificial Intelligence (AI) Fraud Detection
Cloud Platform for Business Spend to Gain Real-Time Fraud Detection Algorithms
SAN MATEO, Calif., Oct. 17, 2017 — Coupa Software (NASDAQ: COUP), a leader in cloud-based spend management, announced today that it has acquired substantially all of the assets of Deep Relevance, Inc. Based in the San Francisco Bay Area, Deep Relevance uses Artificial Intelligence (AI)-based behavior and relationship analytics to help identify individual employee and collusive fraud or other suspicious transactions.
The acquisition will help Coupa utilize AI technology to create a fraud profile based on analyzing customer and aggregated community data for expenses, purchase orders, and invoices. This profile score and related spend transactions can then be used to alert a company’s internal auditors or finance personnel for further review and action.
“When we created Deep Relevance, we set out to identify fraud faster and cheaper than had been possible in the past. Traditional rules-based systems were missing fraud that we knew AI could find,” said Kiran Ratnapu, founder and CEO of Deep Relevance. “We’re thrilled to be a part of the team creating next generation business spend solutions.”
Deep Relevance uses structured and unstructured data from text and images to create risk signals that contain deep, contextual insights. The Deep Relevance AI models then extract information from these signals and include them in the behavioral risk analysis. The system prioritizes alerts by dollars-at-risk to focus auditor attention.
Areas of fraud detection include conflict of interest, bidding integrity, sham vendors, fraudulent invoices, inflated expense claims, duplicate expenses, and personal expenses.
“Deep Relevance’s unique application of AI allows us to accelerate our vision of helping customers reduce fraud through Coupa community intelligence,” said Raja Hammoud, senior vice president of products at Coupa. “We’re thrilled to work with the Deep Relevance team to apply state-of-the-art fraud detection algorithms to Coupa’s hundreds of billions of dollars in accelerating cumulative spend under management.”
Born in the cloud, Coupa delivers a modern spend-management platform that accelerates business by unifying processes across all the ways employees spend money. These processes cover travel and expense management, procurement, invoicing, and related source-to-settle areas. Using the Coupa Open Business Network, the platform has connected more than 3 million suppliers and delivers a powerful solution for businesses committed to controlling their spend.
This release includes forward-looking statements. All statements other than statements of historical facts, including the proposed benefits of the acquisition and statements regarding the capabilities of Coupa and Deep Relevance following the acquisition, are forward-looking statements. These forward-looking statements are based on Coupa’s current expectations and projections about future events and trends that Coupa believes may affect its financial condition, results of operations, strategy, short- and long-term business operations and objectives, and financial needs.
These forward-looking statements are subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially, including: difficulties with the integration process or the realization of the benefits of the acquisition; we have a limited operating history, which makes it difficult to predict our future operating results; if we are unable to attract new customers, the growth of our revenues will be adversely affected; because our platform is sold to large enterprises with complex operating environments, we encounter long and unpredictable sales cycles; if we fail to develop widespread brand awareness cost-effectively, our business may suffer; the markets in which we participate are intensely competitive; our business depends substantially on our customers renewing their subscriptions and purchasing additional subscriptions from us; any decline in our customer renewals would harm our future operating results; because we recognize subscription revenues over the term of the contract, fluctuations in new sales will not be immediately reflected in our operating results and may be difficult to discern; and we have experienced rapid growth in recent periods, and if we fail to manage our growth effectively, we may be unable to execute our business plan, maintain high levels of service or adequately address competitive challenges.
These and other risks and uncertainties that could affect Coupa’s future results are included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in Coupa’s quarterly report on Form 10-Q filed with the SEC on September 8, 2017, which is available at investors.coupa.com and on the SEC’s website at www.sec.gov. Further information on potential risks that could affect actual results will be included in other filings Coupa makes with the SEC from time to time.
The forward-looking statements in this release reflect Coupa’s expectations as of the date hereof. Coupa undertakes no obligation to update publicly any forward-looking statements for any reason after the date of this release to conform these statements to actual results or to changes in our expectations.About Coupa Software
Coupa Software (NASDAQ:COUP) is the cloud platform for business spend. We deliver “Value as a Service” by helping our customers maximize their spend under management, achieve significant cost savings and drive profitability. Coupa provides a unified, cloud-based spend management platform that connects hundreds of organizations representing the Americas, EMEA, and APAC with millions of suppliers globally. The Coupa platform provides greater visibility into and control over how companies spend money. Customers – small, medium and large – have used the Coupa platform to bring billions of dollars in cumulative spend under management. Learn more at www.coupa.com. Read more on the Coupa Blog or follow Coupa on LinkedIn at https://www.linkedin.com/company/99595/