Digital identity management and verification startup Jumio Corp. said it has secured financing for its next stage of growth, a $150 million investment from private equity firm Great Hill Partners.
Jumio said it’s the single largest funding round to date in the digital identity space. The company said it highlights the growing importance businesses are placing on the need to remotely establish their customer’s digital identities, in order to defend against fraud and other financial crimes and comply with Know Your Customer and other regulations.
Jumio is one of the original players in the digital identity market. It was founded back in 2010, and its main offering is a digital ID verification service that can quickly authenticate documents such as passports and driving licenses over the web. The company claims to have pioneered the “selfie + ID” approach to establish people’s credentials online quickly. In addition, its platform offers transaction monitoring and anti-money-laundering services to help businesses ensure they stay in compliance and protect against fraud.
The company has endured a bumpy ride to get where it is today, though. Back in early 2016, it was forced to bankruptcy because of what it said at the time were “certain legacy issues combined with related government investigations and proceedings” that meant it couldn’t secure the funding it needed to stay in business.
Jumio exited bankruptcy that same year, however, after being bought out by Facebook Inc. co-founder Eduardo Saverin, who was an early investor in the company. Later that year it secured $15 million in funding to demonstrate that it was back on track.
Fast-forward five years and with the COVID-19 pandemic now a permanent fixture in people’s lives, things are definitely looking up for Jumio. The company said its services have proved to be especially popular over the last year as more people do business transactions online.
It claims to have achieved record revenues and volumes during 2020, though it didn’t provide specifics. It has been building out the services it offers too. Last year for example it launched its Jumio Go offering, which is an entirely automated version of its offering. And in September it launched its new KYX Platform that combines data from a variety of sources to build a complete digital profile of online users.