Partnerships / Acquisitions

Jumio Raises $15M For Online ID Verification Service — Despite Bankruptcy

A few months after bankruptcy and a brand new owner, Jumio is back in the game, having raised $15 million for its new online ID verification service.

Jumio hit the market in 2011 with a camera-based solution for helping merchants verify credit cards online — first using webcams and eventually branching out into a variety of mobile tools. The core technology itself has also improved and made room for some limited expansion into areas like facial recognition.

The unifying principle behind the tech is cutting down friction, with new customer sign-up and the checkout process happening in a single, smooth and easily verified step.

Things got a bit sticky for Jumio earlier this year when it was announced that it would sell its assets to early Jumio investor and Facebook Cofounder Eduardo Saverin as part of a bankruptcy procedure. This news came after Jumio had raised a collective $35 million or so.

What happened?

“Certain legacy issues combined with related government investigations and proceedings have made it difficult for Jumio to secure necessary funding for its operations,” the company stated at the time.

As it turns out, Saverin’s bid fell short, and Jumio’s assets were sold in May to investment firm Centana Growth Partners.

“The auction process was, as we hoped, competitive and successful,” said Jumio’s CEO at the time. “We are pleased to have achieved an outcome that we believe is not only a terrific opportunity for Jumio going forward but supports the interests of all our various stakeholders.”

Bankruptcy involving the “old” Jumio is ongoing.

The new Centana-owned Jumio has now bagged $15 million from Centana itself and new investor Millennium Technology Value Partners as it tries to ensure growth.

Despite the bankruptcy, Jumio notes that it has garnered “record results” in Q2 2016, with a two-thirds growth in recurring revenue year-on-year (YoY).

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Latest Insights: 

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