InAuth, a provider of mobile fraud prevention and mobile application security has secured a USD20 million Series A funding round led by Bain Capital Ventures.
The investment comes after a year of record growth, where the company added four of the five largest US banks as customers. BCV managing director Ben Nye will join the InAuth board.
InAuth has quickly emerged as the leader for mobile application and browser fraud detection, enhanced authentication and security. Founded in 2011, its customers include large global banks, payment processors, e-commerce merchants, and health insurance companies.
To protect their users, application publishers embed InAuth’s technology into their apps. InAuth then secures both application data and financial transactions from malicious actors, preventing fraud and data loss.
InAuth’s CEO Lisa Stanton, says: “We are excited to be partnering with Bain Capital Ventures to support our global expansion, as well as our entry into new verticals. Mobile transactions will grow at 50% CAGR over the next three years, compared to 10% CAGR for the desktop. Any business that needs to ensure trust in their mobile solutions will benefit from the products and solutions that InAuth provides.”
Bain Capital Ventures’ Managing Partner, Ben Nye led the firm’s investment.
Nye says: “We are impressed with InAuth’s blue-chip client list, as well as their advanced technologies. Fraud on mobile is 70% higher than on the desktop, and we read on a weekly basis about new cybersecurity threats. Businesses must protect their users as mobile becomes the preferred customer touch-point. The InAuth team is paranoid about mobile security, so that their customers don’t have to be.”
“The combination of bank-grade authentication, cryptography and fraud detection helps create a safe transaction environment,” says George Peabody, Partner, with payments strategy consultancy Glenbrook Partners. “Multifactor authentication that doesn’t require explicit user participation keeps friction low. That’s a good thing.”
