Zumigo, which specializes in mobile-device and location-verification services, recently closed a Series B funding round led by Intel Capital, raising $6 million. Zumigo has pioneered a new generation of mobile offerings that provide richer experiences for customers through context-based services. Its portfolio includes marketing to customers through location in context and securing transactions through mobile infrastructure.
In a previous funding round, Zumigo raised about $1.4 million. Existing investors also participated in the Series B round, Aligned Partners being one of them. Zumigo has also begun participating in the Wells Fargo Startup Accelerator Program. Wells Fargo is looking to use Zumigo’s technologies to protect its consumer and business transactions by identifying and authenticating mobile device users.
“The Startup Accelerator builds on Wells Fargo’s history of innovation and increases our visibility into technologies and ideas that will stoke innovation across the enterprise,” said Steve Ellis, executive vice president and head of wholesale services at Wells Fargo. “Zumigo’s mobile technology looks promising, and we’re excited to be working with them.”
Zumigo will be using funds from the recent round for product development and to enrich its global presence. “In an increasingly connected world, mobile, cloud, security, location and commerce are fundamental to any services strategy,” said Hank Skorny, vice president and general manager of Intel Services. “With their best-in-class commerce fraud solution, we see Zumigo as a leader in this space.”
Zumigo has been working with global financial institutions to secure payment transactions and help prevent fraud. Zumigo’s mobile security solution, Zumigo Assure, provides APIs that can be integrated into websites, mobile applications, transactional networks and core banking systems. Zumigo Assure consists of three components:
- Zumigo Assure Radius – Helps match customer location to the point of transaction. This would involve validating that a consumer is where the merchant transaction is occurring and other similar scenarios.
- Zumigo Assure Authentication – Helps identify the device using the network and validate whether the device has been registered by the consumer. This involves running multiple frequency-band tests on the network-connected device.
- Zumigo Assure Identity – Provides information about the owner of mobile device. It also compares existing account data with the contractual data for the mobile device and validates that the phone belongs to valid user.
With the rampant growth in the number of mobile devices in the market, the industry is seeking to leverage the growing adoption of mobile networks and applications to secure and enable commerce, whether conducted in physical stores, on tablets and laptops, or on mobile phones. “We are seeing a plethora of new security, financial and other applications that will utilize Zumigo’s products,” said Zumigo founder and CEO Chirag Bakshi. “This new financing validates our direction and success, and will accelerate growth in our core business of providing mobile location and identity products to financial organizations and enterprises alike.”