LARKSPUR [Updated, Nov. 6, 12:10 p.m.] -- mFoundry, a fast-growing provider of mobile banking and payments services, today said it received $18 million in growth capital.
MasterCard Inc. led the funding round, joined by Intel Capital, FIS and Motorola Mobility. MasterCard and Intel Capital are new investors. The 7-year-old company has received $50 million in funding so far, according to Drew Sievers, co-founder and chief executive officer.
The new capital will be used to fund the development of new payments-related mobile products and services targeted at financial institutions and mobile network operators, according to announcement. mFoundry will also use the proceeds to support the expansion of the existing, profitable mobile banking business, including the addition of 60 employees to its workforce of 100, according to Mr. Sievers.
mFoundry has nearly 600 banks and credit unions using its mobile banking and payments software as a service (SaaS). It's part of the rapidly growing market for mobile financial services.
[caption id="attachment_45490" align="alignright" width="210" caption="mFoundry developed and manages Starbucks Card Mobile for the Seattle-based chain."][/caption]
A recent Federal Reserve analysis the company cited suggests mobile banking will reach 50 percent consumer adoption in a little over six years, compared with longer than 15 years for ATMs and more than 20 for online banking.
"The opportunity in mobile financial services is enormous," said Mr. Sievers. "While our existing mobile banking business is scaling rapidly, there are many other related opportunities that we believe can add significant incremental value to our company. I'm grateful to have such a deep and supportive group of strategic investors behind us."
mFoundry will continue to work closely on mobile banking opportunities with key strategic partner FIS but will also expand the company's focus to include additional payments opportunities with MasterCard, Motorola Mobility, FIS and Intel.
"mFoundry's pace of growth and strong industry position put the company in an ideal spot to expand their product offering," said mFoundry independent board member Kelly Rodriques. "The continued support of partners like FIS and Motorola Mobility plus the addition of powerful new strategic investors like MasterCard and Intel Capital reinforces the work the company is doing. We are thrilled to work together to make mFoundry even more successful."
mFoundry's projects include developing and managing Starbucks Card Mobile, the first and most successful mobile payments program in the country. The company also recently announced a global strategic partnership with MasterCard to deliver NFC-enabled mobile payments solutions to its customers.
MasterCard's network of financial services technology companies includes FIS, First Data, NCR, PayPal, Open Solutions, The CO-OP, PSCU Financial Services and COCC. mFoundry also has strategic alliances with mobile leaders Intel Capital and Motorola Mobility.
mFoundry was founded in 2004 by Drew Sievers and Rodney Aiglstorfer. It recently opened an office in San Francisco.
In October, the company was ranked No. 105 on Deloitte’s Technology Fast 500 list of the fastest-growing technology, media, telecommunications, life sciences and clean technology companies in North America. Company revenue grew 985 percent from the year before. MFoundry was the only provider of mobile banking solutions to make the list.
This story was updated at 12:10 p.m. Tuesday, Dec. 6, with details on company employment, projected hires with the new funds and total funding for the company.