IBS Journal April 2016


Jumio files for bankruptcy, eyes sale to early backer Saverin


inherited, our underlying business remains exceptionally strong. The court-supervised sale and restructuring process will allow us to strengthen the company’s financial structure and extend our leadership position in ID verification.” Saverin comments: “The fair and order-


Facebook co-founder Eduardo Saverin has bought online and mobile credentials authentication outfit, Jumio, after the company filed for voluntary Chapter 11 proceedings in the US Bankruptcy Court. This opened the door for Saverin, an early investor in Jumio, to form an entity called Jumio Acquisition to buy these assets and provide the startup with $3.7 million in fi- nancing to support its ongoing operations. The deal isn’t nailed down, however, as it is subject to better offers under a court-su- pervised process. According to Jumio, it reached this


point as it was unable to secure additional funding due to “certain legacy issues com-


In brief


Unisys has landed a five-year, critical business operations support contract from Colombia’s Banco Popular. It will provide installation, deployment and support services for an EMC2 VMAX 100K storage system at the bank’s production site and a backup location for contingency use and business continuity. Banco Popular runs its core banking platform on Unisys


ClearPath Forward Libra systems. Unisys has begun migrating all information in the systems from the old storage system. The bank says that it expects the new platform to provide such benefits as increased availability, faster access to data, and greater potential for expanding the platform to accommodate new business requirements. India’s ICICI Bank has launched a Host Card Emulation


(HCE)-based service, enabling its credit and debit customers to make in-store contactless payments by waving their smart- phones near NFC-enabled merchant terminals. It introduced contactless debit and credit cards nearly a year ago, but, in what it says is a first in the Indian market, it is now giving customers the option to ditch their plastic friends with the addition of NFC payments, branded iTap, to its Pockets app. The service will initially be available on Android smart-


phones. ICICI Bank employees will be the first to use it, and customers can follow suit in March. The FI has some 30 million debit card holders, another four million credit card users, and reports five million active mobile banking users each month. Scott Thompson and Alex Hamilton


bined with related government investiga- tions and proceedings.” Stephen Stuut, Jumio’s CEO says: “We


created the online ID verification industry, and we are thriving from an operational standpoint as we continue to see robust bookings and build strong relationships with some of the most recognisable brands and companies in the world. After thoroughly evaluating all available options, we determined that an asset sale is in the best interests of Jumio and our stakeholders. We expect this process to be seamless for our customers with no disruption to our operations. Despite some of the challenges Jumio’s leadership team


ly process announced today will allow Ju- mio’s new management and its employees to continue to serve its top tier customers and to realise the company’s potential. With the company’s future operations in good hands, Jumio Acquisition is pleased to make this stalking horse bid to facilitate an orderly transition to a promising future for Jumio.” Jumio was a once a highly touted startup, winning various industry awards and media plaudits for its tech that allows users to have their payment card or ID identified by holding it up to a webcam or mobile phone’s camera. But it found itself competing in an increasingly crowded mobile checkout space, the launch of Apple Pay in particular hitting it hard. And last year founder and CEO Daniel Mattes was ousted following an internal investiga- tion into possible financial irregularities. It listed assets of between $1 million and $10 million and liabilities of up to $50 million in its court filing.


Scott Thompson


© IBS Intelligence 2016


www.ibsintelligence.com


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